Binance Singapore withdraws its crypto license application

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Crypto exchange Binance has withdrawn its application to the Monetary Authority of Singapore (MAS) for a digital payment token services license.

On Monday, Binance.sg stopped onboarding new users and will not allow Singaporeans to deposit cryptocurrencies or fiat on the exchange.

By February 13, 2022, Binance plans to “phase out” all services related to processing cryptocurrency tokens. However, the exchange announced that it will not accept any liability for user assets after the self-determined deadline:

“With immediate effect, users should start planning to withdraw their crypto and fiat from Binance.sg. The accounts of registered users who have not taken the KYC will be suspended.

Binance Singapore users are currently allowed to buy and sell cryptos, using their existing assets until January 12, 2022. As of January 13, Binance.sg users will no longer be able to buy and sell cryptos. During this phase:

“Users can only withdraw and move their crypto to third party platforms or crypto wallets; and / or withdraw their SGD. All accounts must be closed by February 13, 2022.

Binance plans to make other arrangements to release user assets upon formal request to the company’s customer service.

After the deadline, Binance will not allow any Singapore user to close positions or withdraw crypto assets. “Locked crypto assets will be held in an escrow account and your fiduciary assets will be transferred to your personal StraitsX account,” the announcement reads.

“We recommend that you act as soon as possible before the account closing deadline (February 13, 2022). Please note that BAS will not be liable for losses resulting from your inability to withdraw your assets and close your account before February 13, 2022. “

Binance CEO Changpeng Zhao explained that the exchange will still have a presence in the Singapore market and that the pullout was linked to the recent acquisition of the Singapore-regulated private stock exchange Hg Exchange (HGX). The 18% stake signaled an attempt to overcome existing regulatory hurdles, as HGX recently obtained a recognized market operator license from MAS.

Clarification. Binance made a significant investment in the regulated HGX exchange last week. This investment made our own application somewhat redundant. We will continue to work with our partners to develop the crypto industry in Singapore. Forward.https: //t.co/D9oywGEavV

– CZ Binance (@cz_binance) December 13, 2021

Binance has yet to respond to Cointelegraph’s request for comment.

Related: Binance Reportedly In Talks To Launch Crypto Exchange In Indonesia

Despite the ongoing regulatory review, Binance continues to explore new jurisdictions for setting up localized crypto exchanges.

Binance is said to be in talks with Indonesia’s richest family, the Hartonos, to start an exchange service. According to a Bloomberg report, Binance may soon finalize a crypto venture with PT Bank Central Asia (BCA), controlled by Hartonos.

If approved, the new BCA partnership will allow the launch of a second crypto company for Binance in Indonesia. The crypto exchange is also planning to expand into the UK over the next six to 18 months due to regulatory resistance.

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