Binance abandons Singapore cryptocurrency exchange app

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(Bloomberg) – Binance Asia Services Ltd., the Singaporean affiliate of the world’s largest cryptocurrency exchange, has withdrawn its application to operate an exchange in the city-state, ending an effort started there. last year to get approval from Singapore authorities.

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The fiat-to-crypto trading platform Binance.sg will cease operations and close by February 13, Binance Asia said in an emailed statement. The company was one of some 170 companies that applied to the Monetary Authority of Singapore for a license to provide cryptocurrency services.

The withdrawal from the Singapore process will likely end speculation that the Southeast Asian city-state will become the global headquarters of Binance, the company co-founded and run by entrepreneur Changpeng Zhao.

“We always put our users first, so our decision to shut down Binance.sg was not taken lightly,” said Richard Teng, general manager of Binance’s Singapore entity. “I am grateful to the Monetary Authority of Singapore for their continued assistance to Binance Asia Services and we look forward to future opportunities to work together.”

Binance Asia took “global strategic, business and development considerations” into account in its decision to withdraw its candidacy in Singapore, the company said.

Seat search

Founded in China in 2017, Binance Holdings Ltd. has not yet established a global base. Instead, Zhao has incorporated businesses in the places where Binance operates.

Zhao, who holds Canadian citizenship and has been based in Singapore for two years, gave mixed signals on where he could establish his business, saying places in Europe and the Middle East offer pro-crypto alternatives with Singapore.

The story continues

The 44-year-old said last month he bought his very first home in Dubai to show his commitment to the jurisdiction he described as “very pro-crypto”, along with France. Binance has also relaunched its UK registration plans, Zhao told The Telegraph.

Cryptocurrencies extended their decline after Binance’s move. Bitcoin, the world’s largest digital coin, fell 3% to around $ 48,484. Ether, the second largest, fell by a similar 4.1%.

And after?

Binance Asia will refocus its operations on blockchain technology, the statement said.

“Not all crypto business is regulated, and more and more large crypto players might consider having separate regulated and unregulated entities, in order to optimize their revenue and partnership models in different jurisdictions.” said Chia Hock Lai, co-chair of the Blockchain Association Singapore.

Zhao is the majority shareholder of Binance Asia, according to a filing with the Accounting and Business Regulatory Authority. Vertex Venture Holdings Ltd. of Temasek Holdings Pte. is an investor in Binance Asia, according to the filing.

Binance’s withdrawal from its Singapore bid also raised questions about the future of Teng, a former high-profile regulator who joined the Singapore entity in August. The Singaporean previously held positions such as chief regulatory officer of Singapore Exchange Ltd., and spent 13 years at the Monetary Authority of Singapore.

All local employees will join the company’s global operations and continue to contribute to the business, said Hazel Watts, Binance spokesperson in Singapore.

One option for Binance’s future headquarters is the Middle East. The UAE’s central bank recently unveiled a framework for digital assets, while regulators in Abu Dhabi and Dubai are set to begin crypto licensing in the coming months.

But any pivot to the region should be led by new leadership. Omar Rahim, Binance director for the Middle East and North Africa, wrote in a LinkedIn post that he recently left the company to start a new crypto business. His replacement has yet to be named publicly.

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