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Binance bows to regulatory pressure, stops trading in Singapore dollars

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Binance bows to regulatory pressure, stops trading in Singapore dollars

Binance has announced that it will cease offering trading pairs and payment options in Singapore dollars to remain compliant with the country’s regulators. This action by Binance comes on the heels of the Monetary Authority of Singapore’s (MAS) statement that the company “may be in breach of the Payment Services Act.”

According to a Binance publication, from September 10, Singaporeans will no longer be able to trade cryptocurrencies or receive payments denominated in the Singapore dollar (SGD).

The post advised customers to complete all peer-to-peer trades 24 hours in advance of the deadline, “to avoid potential trading disputes.” Moreover, Binance clarified that it is not operating any official Telegram or online communication channels in Singapore. The publication also mentioned that Binance will remove its mobile application from both the Singapore iOS and Google Play stores.

The publication further stated, “Our aim is to create a sustainable ecosystem around blockchain technology and digital assets. Binance welcomes developments to our industry’s regulatory framework as they pose opportunities for the market players to have greater collaboration with the regulators. We are committed to working constructively in policy-making that seeks to benefit every user.”

The decision by Binance to halt certain product offerings came mere days after the Monetary Authority of Singapore, or MAS, warned that the exchange may be in breach of the country’s Payment Services Act. Binance appeared on the regulator’s investor alert list on the first of September. The list includes “unregulated persons who, based on information received by MAS, may have been wrongly perceived as being licensed or regulated by MAS.” The financial watchdog stated that they “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. Binance is required to cease providing payment services … to Singapore residents and cease soliciting such business from Singapore residents.”

This news also comes as the largest cryptocurrency exchange by volume, hired Richard Teng, former CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market (ADGM) as the new CEO for its operations in Singapore.

Bottomline

Binance has become the focus of many other regulators worldwide, including those in the U.K, Netherlands, Thailand, Malaysia, Japan, Germany, Hong Kong, Lithuania, and South Africa. They claimed Binance had been operating without authorization in their jurisdictions. Japan, Germany, U.K and the Canadian province of Ontario all cracked down on Binance exchange offerings a few months ago. The most recent country is South Africa, where the financial watchdog warned its citizens that Binance is not authorized to operate in the country.

The regulatory backlash appears to have attracted negative attention to Binance US, which operates as a separate legal entity as the global exchange. As a result, investors have reportedly backed out of a $100 million funding round for the U.S. exchange. Many analysts believe that the failed funding round may have prompted Brian Brooks to resign as Binance US CEO after just three months at the helm.

Binance’s BNB is trading at $500.27, up 1.88% as of the time of this writing.

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