March 7, 2023
By Sharan Kaur Phillora
Binance is reapplying for a license to offer cryptocurrency services in Singapore, switching from serving retail to corporate clients a year after quitting the trading market. Nikkei Asia, in a story citing a company executive, confirmed That its custodial subsidiary will apply for a license “in due time.”
Here’s what we know:
In December 2021, Binance Singapore issued a statement announcing the withdrawal of their application for a license to operate a cryptocurrency exchange. In February 2022, the business shut down its trading platform there.
According to reports, Binance restructured its domestic business in November to better serve Singaporean corporate clients. As a result, Ceffu replaced Binance Custody as the brand name. It intends to attract experienced investors seeking custody and other digital asset services.
“If you take a look at recent hirings, you will notice that Binance is hiring people with years of experience in law enforcement and regulations,” said Jarek Jakubcek, head of law enforcement training at Binance, to Nikkei Asia.
The Monetary Authority of Singapore recently proposed measures to restrict retail customers’ access to cryptocurrency. These rules would prevent investors from borrowing money to pay for their token purchases. They would also forbid companies from leasing or staking their coins to gain profits. Binance might be leaving the retail industry as a result.
Singapore has pursued the regulation with monitoring guidelines since the market is still troubled by cryptocurrency bankruptcy. As a result of several complaints received between January and August 2021, the regulator noted last year that Binance had also been included in the investor alert list. The agency was scrutinized for its decision to exclude FTX before its death.
Even outside of Singapore, the largest exchange by volume has encountered challenges. After the closure of the FTX cryptocurrency exchange, Binance has come under constant fire in the United States. Furthermore, a recent story asserted that Binance had carried out a “backroom operation” by transferring $1.78 billion in stablecoin to hedge funds.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.