Binance Singapore Arm Acquires 18% Stake in Private Stock Exchange

Binance Asia Services, the Singaporean arm of major cryptocurrency exchange Binance, has acquired a stake in a local private stock exchange, Hg Exchange (HGX).

On December 7, the company officially announced an acquisition of an 18% post-money interest in HGX, a stock exchange licensed and regulated by the Monetary Authority of Singapore.

Richard Teng, CEO of Binance Singapore, said the new investment will help Binance and HGX further expand the scale of products and services “supported by blockchain technology” in Singapore.

“Crypto and traditional financial offerings continue to converge. We are committed to partnering with HGX to improve the blockchain ecosystem in Singapore,” said Teng.

HGX is a community-driven private stock exchange founded by financial institutions such as asset management firm PhillipCapital, local financial services firm PrimePartners and Fundnel, a Southeast Asian private investment technology platform. The exchange reportedly uses the Zilliqa blockchain.

After working as CEO of Financial Services Regulatory Authority at Abu Dhabi Global Market, Teng joined Binance Singapore as CEO in August 2021, a few years after the launch of the Singapore branch. According to the CEO, Binance continues to work closely with “key government agencies” to support the growth of the blockchain ecosystem and is actively hiring local talent.

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The new investment comes shortly after Binance experienced some regulatory difficulties in Singapore. In late September, Binance Singapore restricted users from using its platform, citing compliance issues. Previously, Binance restricted its product offerings in Singapore amid regulators alleging the company may have violated payment laws.

Huobi chose to leave Singapore as a global company to launch a dedicated local entity in November 2021.