Binance will complete the shutdown in Singapore by February 13, 2022.
On Monday, Binance Asia Services Pte Ltd (BAS), the Singapore arm of Binance, announced that it is withdrawing its license application in Singapore. It will “wind down” its Digital Payment Token (“DPT”) services in Singapore by February 13, 2022.
So, Binance will stop offering crypto exchange services in Singapore.
Binance had applied for a license under the Payment Services Act. Now it is no longer an applicant.
Binance Exchange Will Leave Singapore in a Phased Manner
The Binance.sg exchange will close down the business in 2 phases.
In phase one, from December 13, with immediate effect, no new user will be onboarded to the platform. Moreover, the accounts of users, who have not passed the Know Your Customer (KYC) norm, will be suspended.
Also, users will not be able to deposit fiat or crypto on the exchange.
Therefore, only the remaining, KYC verified, users will be able to trade their existing assets on the exchange.
During phase two, from January 13, 2022, to February, `2022, the trading i.e. buying and selling of crypto assets will be ceased.
Users will be allowed to withdraw their crypto assets to any wallet and SGD to their respective accounts.
Post-February 13, 2022, users will not be able to access their funds. Their “crypto assets will be held in an escrow account” and their “fiat assets will be transferred” to their respective StraitsX Personal Account. Following the shut down of Binance.sg, users will need to contact customer service to recover their funds.
The exchange arm of Binance may be exiting Singapore, but the country will continue to be Binance’s blockchain innovation hub, as per a Reuters report.
Binance’s founder Changpeng Zhao also responded to rumours that Binance as a business entity is leaving Singapore.
Singapore is touted as the home of the finance industry of the world. It was expected to lead the crypto revolution. Withdrawal of a key player like Binance raises questions on the expectations of having the city-state as the epicentre of the global crypto industry.
Binance’s Regulatory Woes
Binance has faced regulators heat several times this year. More than 10 countries have scrutinized and expressed apprehensions about its operations and governance structure.
That’s why it has been rumoured that it is looking for an international or regional headquarters to end its regulatory woes. In October, it was reported that it might establish a headquarter in Ireland.
As crypto adoption progresses, regulators around the global will take more interest in the industry and move towards regulation. As of now, the unregulated nature of crypto assets have dissuaded the tech talent from joining the industry. Regulation will provide an impetus to innovation and would also curb down the scams.
News recommendation: Why Crypto Projects Partner with Sports Companies?