Singapore tells cryptocurrency exchange Binance to stop payment services over possible law breach
- Binance is one of the world’s largest cryptocurrency exchanges by trading volume
- It has come under scrutiny from regulators worldwide due to concerns over the use of crypto in money laundering and risks to consumers
Singapore central bank on Thursday said that Binance, one of the world’s largest cryptocurrency exchanges by trading volume, could be in breach of local laws and should stop providing payment services to the city state’s residents.
“MAS has reviewed Binance.com’s operations and is of the view that Binance, the operator of Binance.com, may be in breach of the Payment Services Act,” the Monetary Authority of Singapore (MAS) said in a statement.
“Binance is required to cease providing payment services … to Singapore residents and cease soliciting such business from Singapore residents,” MAS added.
The firm’s Singapore operations are conducted by a separate legal entity from Binance.com, with its own local executive and management team, and does not offer any products or services via the Binance.com website or other related entities, and vice versa, Binance Singapore said.
Binance Asia Services, which operates Binance.sg, has submitted a licence application, and is currently exempted from holding a license for the provision of digital payment token services, MAS said.
The application remains under review, and subject to it demonstrating that it is able to meet requirements under the Payment Services Act, MAS said.