Monetary Authority of Singapore places Binance on alert list
The Singapore Monetary Authority (AMS), the country’s banking regulator and central bank, has just placed Binance on an investor alert list. This Thursday, September 2, 2021, the financial regulator recalled that Binance.com does not have any license to operate in Singapore.
“The Investor Alert List provides a list of unregulated entities which, based on information received by AMS, may have been wrongly perceived to be licensed or regulated by AMS”, the Monetary Authority of Singapore states on its website.
The disclaimer pertains only to Binance.com. Binance’s Singapore platform Binance.sg is apparently not subject to this warning. Contacted by our colleagues from The Block, a Binance spokesperson recalls that Binance.com and Binance.sg are very distinct exchanges:
“Binance.sg operates in Singapore with its own local management team. Binance Singapore is backed by Vertex Venture Holdings and focuses solely on growing the cryptocurrency ecosystem in Singapore and serving Singapore users, ”the spokesperson explained.
As a reminder, Binance operates in Singapore through Binance Asia Services Pte. Ltd, a subsidiary headquartered in the city-state. At the head of the branch is Richard Teng, the former head of regulation at the Singapore Stock Exchange. This entity has not yet obtained a license from the central bank.
On the other hand, it did file an application with the regulatory body. Until the AMS decides on its license application, the Singaporean branch of Binance is free to provide its services under a law called the Payment Services Act.
“Binance Singapore has applied for a license from the Monetary Authority of Singapore. We are currently operating under the exemption granted by AMS and we are fully committed to working closely with AMS to comply with all standards required for license approval, ”explains the spokesperson. .
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Binance is still in the sights of regulators
The Monetary Authority of Singapore is not the first regulator to put pressure on Binance. Over the past few months, the platform has been the target of a wave of warnings and restrictions around the world.
For example, Malaysia’s financial regulator ordered Binance to shut down. A few weeks later, the central bank of the Netherlands ruled that the exchange was not authorized to operate in its territory. Similar warnings have been issued in the United Kingdom, Italy, the Cayman Islands and Japan.
Faced with these warnings, Binance was forced to suspend part of its services in some countries. The platform has suspended futures contracts in Brazil and its derivative product offering in Germany, Italy, the Netherlands and Hong Kong.
Determined to calm the authorities, Binance has also announced several measures. First of all, the platform limited withdrawals to 0.06 BTC per day for basic accounts. Finally, Binance required all its users to fill in an identity document and a photo of their face.
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About the author: Florian Bayard