Singapore to follow up with Binance amid global regulatory scrutiny of cryptocurrency bourse

Binance has applied for a license to offer digital payment token services in the city state as it faces increasing regulatory scrutiny in other countries

The world’s top crypto bourse is being probed in the US and has been banned from doing regulated business in the UK

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As cryptocurrency bourse Binance faces increasing scrutiny around the world, it is seeking a license in Singapore that could help legitimise its business. Photo: Reuters

Published: 9:52am, 2 Jul 2021Updated: 9:52am, 2 Jul 2021

Singapore’s financial regulator said it would follow up as required with the local unit of Binance Holdings Ltd after its parent company came under scrutiny from authorities around the world.

Binance Asia Services Pte has a grace period during which it can operate in the city state while the Monetary Authority of Singapore reviews its application for a license to provide digital payment token services, the regulator said Thursday. A number of other companies are undergoing a similar assessment and can continue their operations in the meantime, a MAS representative said in response to queries from Bloomberg.

“We are aware of the actions taken by other regulatory authorities against Binance and will follow up as appropriate,” the authority said.

The cryptocurrency sector is in the midst of a regulatory crackdown as authorities from China to the US grow concerned about its potential to facilitate money laundering and fraud. In one of the most significant actions to date, an affiliate of Binance Holdings – the top global crypto bourse – was banned from doing regulated business in the UK.

The parent company is being probed by several agencies in the US, Bloomberg News has reported, and Japan’s Financial Services Agency warned that it offered crypto services without registration.

Binance is seeking a license that would legitimise its operations in Singapore, along with crypto firms including New York-based Gemini Trust Co LLC and Hong Kong-based Crypto.com.

Binance Asia Services is a separate legal entity and does not offer any products or services via the Binance.com website or Binance Markets Ltd, the company said by email. The Singapore entity is backed by Vertex Ventures Holdings, and focuses on growing the local blockchain ecosystem and servicing users here, it said.

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