The biggest stock exchange in the world, Binance, wants to return to the Singapore market after withdrawing in 2021 because it was unable to obtain a license there.
Binance has chosen to re-enter the Singapore market after withdrawing from it last year. Binance has been successful in obtaining a cryptocurrency license in a number of significant geographies, from France to Dubai and from the Netherlands to Bahrain.
Nikkei Asia reported that Binance has chosen to reapply to the Monetary Authority of Singapore, expanding its geographical domination even further. Unnamed corporate leaders served as the basis for the report. When Binance intends to reapply was not disclosed.
Binance and Singapore have a History
Binance Asia Services, the Singapore-based subsidiary of Binance, was forced to halt operations in December 2021 after withdrawing its application for a local license. The crypto exchange gave only “strategic, commercial, and developmental” concerns as the explanation.
Meanwhile, Binance‘s Secure Asset Fund for Users (SAFU) -currently known as Ceffu-, the cryptocurrency exchange’s custodial division, will be applying to the Monetary Authority of Singapore for the Capital Markets Service license (MAS).
Previous regulatory pressure from the MAS on Binance led to the cryptocurrency exchange pulling out of the market when the agency opted not to renew Binance‘s license in 2021 because it had not made the necessary reforms, according to the regulator.
Singapore’s Strict Policies seem to have softened a bit
Singapore has a favorable attitude toward cryptocurrencies but with rigorous and strong regulatory restrictions. In 2021, Binance was not granted a license in Singapore, and the stock market declared that it had left the nation.
Singapore, regarded as the “crypto hub of Asia,” is being seriously challenged by Hong Kong. Bitcoin and Ethereum ETFs have just been recognized in Hong Kong. In every interview he does, Binance CEO Changpeng Zhao emphasizes how vital regulations are to his company and how they hold the most cryptocurrency licenses globally.
Let’s remember Singapore’s Strict Policies
Singapore has implemented strict policies regarding cryptocurrencies in an effort to protect consumers and prevent illegal activities such as money laundering and terrorist financing.
The Monetary Authority of Singapore (MAS), the country’s central bank, has implemented a licensing framework for cryptocurrency exchanges and payment service providers. This framework requires these entities to comply with anti-money laundering and counter-terrorism financing regulations and to meet other regulatory requirements such as customer due diligence and transaction monitoring.
Additionally, the MAS has warned investors about the risks associated with investing in cryptocurrencies and has advised them to exercise caution when considering such investments. The MAS has stated that cryptocurrencies are not legal tender and are not backed by any government or asset, and that their values can be highly volatile.
While Singapore has taken a cautious approach to cryptocurrencies, it has also recognized the potential benefits of blockchain technology and has encouraged its development in various industries, including finance and logistics.
Overall, Singapore’s strict policies regarding cryptocurrencies aim to balance the potential benefits of digital assets with the need to protect consumers and maintain financial stability. These policies have helped to create a regulated and safe environment for the use and trading of cryptocurrencies in the country.
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