- Binance has asked its Singapore customers to close all trading positions by October 26.
- Binance has come under the investors’ alert list released by Singapore MAS which restricts it from offering services in the country.
In a sudden decision, world’s largest crypto exchange by trading volume – Binance – has decided to suspend its services in Singapore. As per the latest announcement, Binance plans to suspends a range of services including fiat purchase channels, crypto spot trading, fiat deposit functions, and liquid swap.
The suspension will take effect next month starting October 26. The official announcement from Binance notes:
We will be restricting Singapore users in respect of the Regulated Payments Services in-line with our commitment to compliance. Users in Singapore are advised to cease all related trades, withdraw fiat assets and redeem tokens by Wednesday, 2021-10-26 04:00 AM UTC (12:00 PM UTC+8) to avoid potential trading disputes.
Binance has been facing high regulatory scrutiny worldwide, including in Singapore. The securities regulator of the country has now put Binance.com under the Investor Alert List. Thus, Binance along with other 699 companies in this list can’t offer their services in Singapore.
Besides, the exchange has also been facing accusations of breaching the local payments laws in Singapore. Singapore central bank – Monetary Authority of Singapore (MAS) – has been reviewing Binance’s operations. It believes the exchange “may be in breach of the Payment Services Act for carrying on the business of providing payment services to, and soliciting such business from Singapore residents without an appropriate licence.”
Binance and Its Regulatory Hurdles
CBinance has been under strong regulatory scrutiny over the last few months. The exchange has been shifting base over the past few years to separate jurisdictions. The fact that Binance doesn’t have a global headquarters hasn’t gone well with the regulators.
The exchange faced regulatory backlashes recently from Europe, Asia, and North America. Regulators in this regions have accused the trading platform of non-compliance. Recently, it faced accusation of market manipulation and insider trading in America.
Furthermore, the US Commodity Futures Trading Commission (CFTC) has launched an investigation into Binance Holdings, the global wing. However, the exchange has denied these allegations stating that it has zero tolerance for insider trading. It also noted that its securities team has necessary procedures in place for investigating and prosecuting people involved in such behaviour.
Just last week, Binance also suspended its crypto derivatives offerings in Australia. Starting September 24, it will stop offering crypto futures, options, and leveraged tokens to its Aussie customers.
Furthermore, Binance has also given a 90-day period for existing traders to reduce and close their position for the restricted products.
Binance said that it has been constructively working with regulators worldwide to comply with the rules. But so far it has been on the receiving end of all the regulatory action. Interestingly, it also turns out that despite this regulatory crackdown, it reported 65% increase in trading volumes.