The Binance unit in Singapore decided to withdraw its license application to run crypto services in the city-state. What's wrong?
Binance is one of the largest crypto exchange companies in the world. Binance did not give a clear reason for the closure in Singapore, they only said it would focus more on blockchain innovation in Singapore, not crypto exchanges.
However, in recent times, governments and regulators in various countries are increasingly monitoring the cryptocurrency industry, including Binance. Meanwhile, Singapore is actually a favorite location for crypto industry players because the regulations in that country are considered relatively clear compared to other areas.
Quoted from Reuters, Binance is one of 100 crypto companies that applied for operating licenses there. They are allowed to run their business while the license is processed.
However, Binance decided to withdraw the license application. Their platform for crypto trading will close in mid-February. Last September, they announced that due to local regulations, users in Singapore could not trade on their global platform.
A spokeswoman for the Monetary Authority of Singapore said Binance had put forward plans to regularly shut down their services and give users more time to look for alternative services.
"I think Binance's withdrawal of the license reaffirms that the licensing regime in Singapore is quite strict," said Chia Hock Lai, chairman of Blockchain Association Singapore.
"However, Binance also stated that Singapore will remain the center of their blockchain innovation, so it is consistent with the narrative that Singapore is a very important blockchain hub," he added.