Binance.com is restricting Singapore users to access its services, as it seeks compliance with Singapore’s Central Bank’s regulations.
The Monetary Authority of Singapore (MAS) banned Binance.com to offer unlicenced payment services in the region. The MAS said the exchange was in violation of the country’s Payment Services Act, for operating without a license. Binance did not apply for a license under local law, which prompted MAS to add Binance.com in the investor alert list. This warns consumers that Binance isn’t regulated or licensed to provide any payment services locally.
MAS is currently updating its regulatory framework for crypto-related activities that include digital payments. Payment Services Act (PSA) covers all crypto businesses and exchanges based in Singapore, which brings Binance and its peers under anti-money laundering and counterterrorist-financing rules.
The announcement came as a blow to Binance’s efforts to comply with the regulators’ demands across the globe.
Changpeng Zhao, CEO at Binance said the cryptocurrency exchange has recently shut down its futures and derivatives business across Europe, as well as Hong Kong and Australia, as a “proactive” measure.
Binance users in Singapore will not be able to access certain features
Certain functions of Binance.com became inaccessible to users in Singapore starting 26th October 2021 which includes fiat deposits, spot trading of cryptocurrencies, and liquid swaps.
Users in Singapore are advised to halt all related trades, withdraw fiat assets, and redeem tokens by October in order to avoid trading disputes.
It will remove its app from iOs and Play Store
Binance will remove its trading app from the Google Play Store and Apple App Store for Singaporean users.
As one of the market leaders, Binance constantly evaluates its product and service offerings. It will restrict users in Singapore with respect to the regulated payments services in line with its commitment to comply first with the law.
The increased scrutiny has also forced Binance to exit its futures and derivatives business in Europe, along with other moves to cut down its products and offerings.
Binance earlier came under inspection in the UK, Japan, Lithuania, Netherlands, Germany, Malaysia, Hong Kong, South Africa, and Thailand for operating without authorisation in these countries’ jurisdictions.
Binance’s Singapore entity has already submitted a license application to the country’s regulator. Binance.sg is currently exempt from holding a licence until the review of its license application is completed.