A year after leaving the trading market, Binance is making another attempt for a license to provide cryptocurrency services in Singapore, shifting from retail to corporate customers.
Nikkei Asia confirmed in its report citing the company executive, that “in due course,” its custodial arm will apply for a license.
Binance Withdrew Crypto Exchange License Application in 2021
Binance Singapore made a statement in December 2021 that it has withdrawn its application for a license to run a cryptocurrency exchange. The company closed its trading platform in the country in February 2022.
However, in November, Binance reportedly redesigned its domestic company for Singaporean corporate customers. In the process, Binance Custody was rebranded as Ceffu. It aims to appeal to professional investors seeking custodial and other digital asset services.
Jarek Jakubcek, head of law enforcement training at Binance, told Nikkei Asia, “If you take a look at recent hirings, you will see that Binance is hiring people with years of experience in law enforcement and regulations,”
The executive hinted that the business is attempting to satisfy requirements laid down by the Monetary Authority of Singapore (MAS).
MAS Remains Strict About Retail Crypto Exposure
Athena Yu, Ceffu’s vice president, told the paper:
“Given the city’s reputation in innovation, good corporate governance and a strong regulatory framework, it’s no surprise that institutional investors are attracted to set up shop here.”
The MAS has pushed financial firms to discourage retail cryptocurrency dealing since it tightened regulation in the sector. The Monetary Authority of Singapore recently suggested a number of steps limiting access to cryptocurrencies for retail customers. These regulations would stop investors from taking out loans to pay for their token acquisitions. Additionally, they would outlaw businesses from leasing or staking their coins to earn returns. Therefore, Binance could be moving away from the retail sector.
Singapore has aggressively pursued regulatory, and oversight standards as crypto bankruptcies continue to plague the market. The regulator mentioned last year that Binance had also been added to the investor alert list due to several complaints received between January and Augugust 2021. It was a move that had the agency under fire for excluding FTX before its demise.
Meanwhile, the largest exchange by volume has encountered regulatory issues even outside of Singapore. Since the demise of the FTX cryptocurrency exchange, Binance has been the target of ongoing critique in the U.S. In addition, a recent Forbes article claimed that Binance had engaged in a “backroom manoeuvre,” transferring $1.78 billion in stablecoin to hedge funds.
Around the same time, concerns about the exchange withholding money from users of its P2P marketplace also came to light.
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