Binance’s regulatory setback in Singapore spurs shift in focus to Indonesia, Middle East
- The world’s largest cryptocurrency exchange withdrew its bid for a licence; reports said it couldn’t meet anti-money-laundering and terrorism financing criteria
- Analysts said the move could prompt firms to explore other places like Indonesia or the Middle East, but Singapore, with its clear-cut regulations, is still crypto-friendly
Observers at the time said the move would cement Singapore’s status as the leading crypto-financial hub in Asia and likely herald a wave of crypto-related businesses moving to the city state. That prediction came true as some firms, including Huobi, the group behind China’s largest crypto exchange, set up shop in the island nation.
Although Singapore is viewed largely as a crypto-welcoming place with regulators open to experimentation, analysts suggested that a major trading platform’s decision to wind down its operations in the republic may have shifted sentiments slightly.
Binance’s chief executive Zhao Changpeng indicated in a tweet on December 13 that the firm’s investment into a regulated exchange made its application “somewhat redundant”.
But reports later suggested that the world’s largest cryptocurrency exchange was not able to meet Singapore’s criteria for safeguarding against money laundering and terrorism financing.