|
Binance, a cryptocurrency trading platform suspected of violating the Payment Services Act, said it would stop providing trading of some products in Singapore. However, this move mainly involves Binance.com and does not affect the services provided by Binance's Singapore company Binance.sg. Interviewed users and industry insiders also believe that this will not seriously undermine investors' confidence in compliant cryptocurrency companies.
Binance published a blog post the day before yesterday (September 5) saying that it will stop providing SGD currency trading and payment options, and will also be removed from Apple and Google's Singapore iOs and Play Store mobile app stores.
The company called on users to complete all relevant peer-to-peer transactions and remove related transaction advertisements by Thursday at the latest to avoid transaction disputes.
However, the company emphasized that Binance Singapore Binance.sg is an independent entity from Binance.com, has a local management team, and does not provide any products or services through Binance.com. In other words, the operations of Binance.sg are not expected to be affected.
Binance, the world's largest cryptocurrency trading platform, was included in the list of investors that investors should be wary of by the Monetary Authority of Singapore last Thursday.
A spokesman for the MAS said Binance may have violated Singapore’s Payment Services Act by providing and soliciting payment services to Singapore residents without applying for relevant licenses under the Payment Services Act.
As for Binance.sg, it is operated by Binance Asia Services (BAS), a Singapore-registered company. BAS has previously applied for a license under the Payment Services Act and is currently exempted from holding a license to operate a digital payment token service business locally under the transitional arrangement of the Act.
MAS will take action against non-compliant operators
Binance.sg received investment from Vertex Ventures, a subsidiary of Temasek Holdings, in 2018.
In an interview with Lianhe Zaobao, Xie Fulai, founding president of the Singapore Fintech Association and co-president of the Blockchain Association, pointed out that the MAS has strict and clear guidance on cryptocurrency regulations and regularly clarifies this to industry players.
“MAS has actually taken a proactive approach, indicating that it is prepared to take enforcement action against non-compliant operators. Indirectly, this will give compliant operators more confidence and provide them with a level playing field,” he said.
An industry insider who declined to be named said he was not surprised by the MAS’ move as Binance’s parent company does not have a local license but has been providing services to Singaporeans through its license-exempt subsidiary, Binance.sg.
It is understood that Binance.com, the parent company's trading platform, and the local Binance.sg trading platform are independently operated and provide different services. The latter is mainly based on over-the-counter transactions, and investors only buy and sell mainstream cryptocurrencies through the platform; the former's trading model is more like a securities firm, covering cryptocurrency futures, leveraged trading, derivatives and other higher-risk investments.
"MAS needs to put in place regulations to protect Singapore investors and ensure they do not take excessive risks," the industry player said.
Huang, a media worker, has accounts on two Binance trading platforms, totaling more than $3,000. He said that he mainly trades in US dollars, so Binance's cessation of SGD payment options and removal of mobile apps did not have much impact on him. But he will consider transferring the money to the Binance.sg account or other trading platforms in the future.
He also said: "I don't think this will seriously undermine my confidence in investing in cryptocurrencies, because our country has always done a good job in cryptocurrency regulation. As long as they are compliant and licensed cryptocurrency companies, they are basically reliable. Of course, I will continue to pay attention to developments."
In Binance’s telegram, most users were concerned about whether this would affect their account transactions, and some users said they understood the HKMA’s intention.
Some users said that the derivative investments provided by Binance.com often use leveraged trading and are not suitable for general retail investors because they may lose all their invested funds or even more. The Monetary Authority of Singapore is naturally extremely cautious about such transactions.
Since April this year, Binance has been facing tightened scrutiny from regulators around the world. Among them, Binance Markets was banned by British regulators in June because of concerns that the platform could not effectively prevent money laundering and other financial crimes.
The founder of Binance is Zhao Changpeng, who became rich through his cryptocurrency business and recently made it onto the Forbes Singapore 50 Richest List, ranking 22nd with a net worth of US$1.9 billion.
A Binance spokesperson said Binance.com is working closely with the HKMA and other regulators and making any necessary service changes to comply with relevant regulatory standards. |
