Binance, the world’s largest cryptocurrency exchange, plans to apply for a license to offer cryptocurrency services in Singapore through its custodial arm, Ceffu. The exchange is pivoting from retail to corporate clients, seeking to comply with regulatory requirements in the region. This move comes as Binance faces increasing regulatory scrutiny in the US and Singapore. In this article, we will discuss Binance’s plans to apply for a license in Singapore and its efforts to meet the demands of regulators.
According to a report from Nikkei Asia, Binance, the world’s largest cryptocurrency exchange, is planning to apply for a license to offer cryptocurrency services in Singapore. The exchange’s custodial arm, Ceffu, which caters to professional investors seeking digital asset services, will be responsible for the application. Binance has been ramping up its capabilities to meet the demands of regulators, according to Jarek Jakubcek, head of law enforcement training at Binance. Mr. Jakubcek stated :
“If you take a look at recent hirings, you will see that Binance is hiring people with years of experience in law enforcement and regulations”.
Binance is pivoting from retail to corporate clients as it seeks to comply with regulatory requirements in Singapore. Last year, the exchange’s local unit dropped its bid for a domestic license from the Monetary Authority of Singapore and exited direct retail services in the city-state. The move comes as Singapore’s regulator is reviewing feedback on its proposals to expand its reach in the crypto space to safeguard consumer interests. Observers predict it will be months before any new rules come into play.
Binance is facing increasing regulatory scrutiny in the US and Singapore. In the US, regulators opposed Binance U.S.’s proposal to acquire the assets of bankrupt crypto lender Voyager Digital, noting that part of the rescue plan may violate local securities law. In Singapore, Binance has been investigated by the city-state’s white-collar crimes investigation unit on whether it had broken any rules. The regulator has taken a tougher stance on crypto speculation activities within its borders, ordering the exchange to stop courting business from mom-and-pop investors in the country last year after it solicited Singapore users without a permit.
Binance’s plans to apply for a license to offer cryptocurrency services in Singapore through its custodial arm, Ceffu, is a step towards complying with regulatory requirements in the region. The exchange’s pivot from retail to corporate clients is also aimed at complying with regulatory requirements. However, Binance is facing increasing regulatory scrutiny in the US and Singapore, which could affect its operations in these regions.
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