Binance is looking to legally expand its global influence and this goal is currently under threat in countries like the United States.
The Binance exchange, the world’s largest digital currency trading platform, is ready to try its luck again by applying as a payment service provider in Singapore. As reported For Nikkei Asia, the trading platform will apply to the Monetary Authority of Singapore (MAS) for the Capital Markets Service License through its local subsidiary Ceffu.
Ceffu was rebranded in February after previously trading as Binance Custody. Unlike its core service offering, the exchange’s new search will see it offer custody services in Singapore, but with one caveat, its services will only be accessible to corporate or institutional clients.
Binance was once in pursuit of a license in Singapore, but withdrew its offer in 2021. While the exchange said it made the decision because it had already invested in a local exchange, making the move counterproductive, the industry believed in that time that the firm was impatient with the extended time for which the MAS is known.
Since then, the company has been looking for ways to comply with regulatory demands that culminated in its preparation to apply for the license with its new unit.
“If you look at recent hires, you’ll see that Binance is hiring people with years of experience in law enforcement and regulations,” said Jarek Jakubcek, head of law enforcement training at Binance.
Being big comes with its own unique variety and the same goes for Binance. The exchange is constantly under the radar of regulators and has emphasized its commitment to seeking the right regulatory approvals in different regions.
The Singapore election was aptly captured by Athena Yu, Vice President of Ceffu, who said:
“Given the city’s reputation for innovation, good corporate governance and a strong regulatory framework, it’s no surprise that institutional investors are drawn to set up shop here.”
Binance in Singapore may be a complementary move
The Binance exchange seeks to legally expand its global influence and this goal is currently under threat in countries like the United States. With the exchange known for being on the radar of major media platforms, damning investigations into its finances are always making the rounds.
In one of the latest from Forbes, the media team said that there are some fund movements within Binance that mimic the related cash management exhibited by FTX prior to its bankruptcy. While the exchange has debunked these allegations with evidence to back up its claims, it has been unable to avoid investigations into Binance.US, its subsidiary in the country.
These and other investigations have led to the withdrawal of support for the exchange’s offer to acquire the remaining assets of bankrupt crypto lender Voyager Digital. With growing uncertainty about your business in the United States, getting a license in Singapore can be a smart move with huge long-term benefits.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.