Singapore’s central bank said it will do so last week “Tracking” with the popular cryptocurrency trading platform Binance as appropriate.
This is in light of the actions taken by other regulators. Britain, for example, has banned the company from conducting regulated activities there.
On Thursday (July 7), Binance stepped forward and said yes committed to work with regulators and establishing systems to protect the interests of users.
In a letter posted on the firm’s website, Binance founder and CEO Zhao Changpeng acknowledged the need to develop formal guidelines to prevent misuse of cryptocurrencies worldwide.
He said more regulations are, in fact, positive signs that the industry is maturing.
Binance’s arm in Singapore is called Binance Asia Services. It manages the Binance.sg platform and is well known among Singaporeans who trade in bitcoin and several other cryptocurrencies.
Let’s see why Binance faces regulatory scrutiny and how it can affect consumers here.
What is Binance and what does it do?
Binance is one of the largest exchanges in the world in the cryptographic industry.
Its cryptocurrency exchange allows users to trade cryptocurrencies directly with each other. Binance offers a wide range of services to users around the world, from crypto spot and derivatives trading to tokenized versions of stocks.
Last month, Binance trading volumes reached US $ 662 billion, nearly ten times in July last year, according to CryptoCompare data. According to Glassdoor, the company has grown to reach one annual income of nearly 1 billion US dollars.
Its own digital currency, Binance Coin, is the fourth largest in the world in terms of market capitalization.
Binance Coin, changed only around US $ 20 levels in the past, to the March crypto ad that caused its listing to rise to an all-time high of US $ 915. It is currently around $ 430 per piece later China’s recent cryptographic repression.
Binance’s corporate structure is said to be opaque, as its holding company is said to be registered in the Cayman Islands. His company’s website claims to have more than 2,000 employees in more than 20 locations around the world.
Is Binance legal in Singapore?
Binance launched its cryptographic exchange in Singapore in 2019, allowing users to buy and sell cryptographic assets such as Bitcoin using the Singapore dollar through fast and secure transfers Electronic Funds Transfer System (FAST).
Binance’s arm in Singapore was officially launched the same year. Called Binance Asia Services, it is backed by Temasek-Vertex Holdings.
According to the Singapore Monetary Authority, Binance Asia Services is exempt from having a license under the Payment Services Act for the provision of digital payment token services. This is while your license application is being reviewed.
The company has established its presence in Singapore. Its local address is registered to be Guoco Tower, at Wallich Street 1. It is located in Tanjong Pagar, the central district of Singapore.
When Vulcan Post reviewed its career page, it showed that the company is currently up and running active hiring more than 50 functions for its office in Singapore.
Why do regulators mark it?
Binance has faced intense scrutiny from global regulators in recent months. The most prominent regulatory conflict was Britain banning the company to carry out regulated activities.
This is due to the growing popularity of cryptographic exchange in Britain. Its app has been downloaded 1.8 million times this year and 2.2 million times in total, according to mobile data firm Sensor Tower.
This is not a surprise, as Binance has garnered a large following worldwide, as seen on its Telegram channels for users in more than 30 countries.
The British Financial Conduct Authority had said the British arm of the stock exchange could not carry out any regulated activity, but did not provide any explanation. Britain generally does not regulate cryptographic trade, except for some activities such as cryptographic derivatives.
The company has also been investigated by various regulators and government agencies such as Germany and Japan.
The Japanese regulator said last month Binance was operating illegally in the country, while the German watchdog said in April that it ran the risk of being fined for offering stock-linked tokens.
It is said that the regulators are concerned on the standard of controls against money laundering in cryptographic exchanges and the risks posed to consumers by cryptocurrency trading. Therefore, older players entering new jurisdictions, such as Binance, face the heat.
Will it be put into regulatory issues here?
Binance has said it takes its compliance obligations very seriously and is committed to following all regulatory requirements wherever it operates.
In a note to Binance users posted on its website earlier this week, Zhao came forward to state that the firm intends to continue working with regulators to meet its concerns amid the growing crypto industry.
Zhao said the firm had this year helped some 5,600 investigative applications from police agencies around the world to crack down on cybercrime, such as money laundering, scams and terrorist financing.
Based on Zhao’s latest statement, Binance appears to be ready to cooperate with regulators.
The CEO added that the company is strengthening its international compliance team to provide “high-level guidance” and plans to double the size of the team by the end of the year.
He commented that laying the groundwork for cryptography rules correctly will allow the general population to feel secure in participating in cryptography. By being cooperative, it will benefit the cryptographic industry as it allows for an opening to the mass market, he noted.
“I think a well-developed long-term legal and regulatory framework will be a solid foundation that really makes cryptography essential in everyone’s daily lives,” he said, adding that clarifying and building the first set of standards is fundamental to the continuation of the industry. growth.
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Featured Image Credit: BBC