MAS asks Binance to exchange cryptography to stop services in Singapore – Health Guild News

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Binance received an order yesterday (September 2) from the Singapore Monetary Authority (MAS) to stop providing payment services to Singapore residents.

A representative of MAS as supposed said the U.S. cryptocurrency exchange operated by Binance.com provides unlicensed payment services in violation of payment services law.

Since then, the company has been put in MAS ‘ List of investor alerts to warn consumers in Singapore that Binance is not regulated or licensed in Singapore to provide any payment service.

“Binance is required to stop providing payment services regulated by the Payment Services Act to Singapore residents and stop requesting this business from Singapore residents.” dit a MAS representative.

However, Binance Asia Services (BAS), an independent entity responsible for the cryptographic exchange platform Binance.sg, has applied for a license under the Payment Services Act.

BAS is currently exempt from having a license to provide digital payment token services following transitional agreements under the law.

The exemption applies to operators who had conducted regulated business prior to the enactment of the Payment Services Act on January 28, 2020. Entities may continue to provide services while license applications are processed and Exemption will last until approval, denial, or withdrawal of the license application.

PERUT dit which is being communicated with Binance Asia Services, which is expected to “immediately begin an orderly suspension of the facilitation of digital payment token asset transfers” with Binance.

Binance Asia Services will inform its customers of the relevant arrangements shortly.

Singapore is not the first to take action against Binance

Image credit: Alamy

This reduction in MAS is not the first: there has been one series of the regulatory measures of Binance’s operations worldwide.

Binance was warned by German financial regulator BaFin in April this year for a possible breach of security rules in the launch of its securities trading without having published an investment brochure.

The U.S. Department of Justice and the Internal Revenue Service investigated Binance in May this year, citing concerns that cryptocurrencies are being used to hide illicit transactions, such as theft and drug dealing. There are also concerns about tax evasion by Americans who have benefited by betting on the meteoric rise of the crypto market.

In June this year, Binance’s British branch, Binance Markets, was banned from conducting regulated business in the UK. There is concern that Binance Markets will not be proactive in preventing financial crimes on its platform, such as money laundering.

The money laundering agency of India also initiated an investigation into the company for a possible violation of foreign exchange regulations.

Binance was also warned by the Japan Financial Services Agency on June 25 for not being registered to do business in the country.

Other countries and cities that joined the global crackdown on Binance are Hong Kong, Italy, Malaysia and Thailand.

What does this mean for Binance customers?

Binance.com is reported be in talks with the Singapore authorities to address these concerns.

They said in a statement: “Binance.com takes a collaborative approach in working with regulators in the navigation of this emerging industry and we take our compliance obligations very seriously.”

Meanwhile, Binance.sg responded by saying that the MAS measure will not directly affect its services, and stressed that it is an independent legal entity of Binance.com.

Binance Singapore argues that its sole focus is to grow the cryptocurrency ecosystem locally and provide service to its Singapore users.

Featured Image Credit: WIRED





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