Why Binance Singapore withdrew its crypto license?

Why Binance Singapore withdrew its crypto license?

Binance Asia Services Ltd., the Singaporean arm of the global crypto exchange recently withdrew its license before the Monetary Authority of Singapore (MAS) acquired a major stake in a native exchange. The move puzzled many given the Singapore arm of the crypto exchange has been operating in the country under special operational rights granted by the MAS. The global platform of the exchange has faced regulatory scrutiny by MAS earlier, but the native company was expected to make headway in the country.

An insider familiar with the matter told Bloomberg that Binance Asia Services Ltd. failed to meet the central bank’s criteria for safeguarding against money laundering and terrorism financing. The MAS allows platforms to withdraw their license if they are aware of possible rejection. This helps platforms as it doesn’t give away the actual reason for rejection.

“Applicants can withdraw their applications should they see fit, upon which those who are operating under the exemption will be required to cease providing regulated payment services,” the MAS spokesperson said.

Binance didn’t list an official reason for its departure and claimed it as a decision based on “strategic, commercial and developmental considerations globally.”

Binance CEO Claims Fake News

Binance CEO, Changpeng Zhao also known as CZ took to Twitter to dismiss the recent insider article about failing to meet AML regulations as fake news and FUD. He also claimed Binance is committed to making Singapore a crypto hub in Asia.

More fake news / FUD on SG, just ignore.Related articleDid Tether’s Latest Lawsuit in New York Trigger Recent Crypto Market Crash?Truth: Binance is committed to help make SG a crypto hub in Asia.— CZ 🔶 Binance (@cz_binance) December 17, 2021

After pulling out of Singapore, now the top cryptocurrency exchange is eyeing Indonesia as a key destination to maintain its stronghold in Asia. Binance recently announced they have partnered with the biggest telecom firm in Indonesia to launch a cryptocurrency exchange in the country. The crypto exchange has also indicated opening headquarters in Abu Dhabi.

Nearly 70 fintech firms in Singapore are still awaiting regulatory approval to officially operate cryptocurrency-related services. out of a total of 170 applications received after legislation governing the payments industry went into effect in January 2020. So far, four firms have been approved, including DBS Group Holdings Ltd.’s brokerage unit and Independent Reserve.

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