CEO Changpeng Zhao (CZ) has confirmed that Binance is withdrawing its application for a cryptocurrency trading license with the Monetary Authority of Singapore (MAS).
Since the summer, the highest-volume exchange has been struggling due to problems with regulators around the world. This has forced Binance to change the way it does business, including reducing the maximum leverage from 100x to x20. At the end of September, the exchange stopped offering fiat deposit services to Singaporean users.
What happened recently in Singapore seems more serious. Binance has not only withdrawn its application for a trading license, it has also announced that it will cease operations on February 13, 2022.
Binance Singapore will close next year
In one notification Binance, which was sent to users in Singapore on Monday, said it intends to withdraw its license application with MAS and discontinue the service.
The notice also sets out a procedure to facilitate withdrawals from the region that will be applicable immediately if the service is discontinued for users.
The exchange also advises existing users to withdraw funds before the February 13 deadline, and warns that reclaiming funds will become more expensive if there is any delay.
The company said this was a well thought decision and apologized for the inconvenience.
“The decision has been carefully considered and we apologize in advance for any inconvenience.”
CZ explains future plans
When justifying such a decision, CZ said Binance bought “a sizeable investment” on the HGX regulated exchange. He sees it as a better way into the future and makes the Binance app “a bit superfluous”.
“Binance made a sizeable investment in the HGX regulated exchange last week. This investment makes our application redundant. We will continue to work through partners to develop the Singapore crypto industry. “
According to The Straits Times, the “significant investment” mentioned by CZ accounts for almost one fifth of HGX’s equity, 18% to be precise.
HGX recently obtained an Accredited Market Operator license from MAS and also lists other assets such as wine, art and real estate. In addition, HGX is operated on the Zilliqa blockchain.
Regarding the acquisition, Richard Teng, CEO of Binance Singapore and former CEO of HGX, said the partnership will improve products and services for everyone involved.
“Cryptocurrency and traditional financial services continue to converge. With this investment, we are working with HGX to improve our range of blockchain-based products and services. “
As of Q4 / 2020, the Zilliqa ecosystem will have an additional stablecoin XSGD that is pegged to the Singapore dollar. While ZIL has now plunged into a four month downtrend, everyone is carefully watching how its price action will react to this news.
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