• Binance is seeking a license to offer cryptocurrency services in Singapore for institutional clients.
• The Monetary Authority of Singapore (MAS) published proposals in October 2022 to broaden its authority in order to better protect consumers’ interests in the cryptocurrency sector.
• Binance has provided feedback on the regulator’s proposals and recommended a few changes.
Binance Seeks Singapore License
Binance is seeking a license to offer cryptocurrency services in Singapore once more, focusing on providing custodial and other digital asset services to professional investors rather than retail investors. The world’s largest crypto exchange is planning for its custodial arm, Ceffu, to apply for a permit from the local financial regulator.
MAS Proposes Enhanced Consumer Protection
The Monetary Authority of Singapore (MAS) published proposals in October 2022 to broaden its authority in order to better protect consumers‘ interests in the cryptocurrency sector. MAS proposed a ban on the use of credit lines to purchase cryptocurrencies, as well as administering assessments for retail investors prior to trading virtual tokens.
Binance Provides Feedback
Binance provided feedback on the regulator’s proposals for enhanced consumer protection, recommending a few changes such as adopting a calibrated approach when it comes to protecting clients from the risks of unregulated leverage.
Increasing Regulatory Scrutiny
Increased scrutiny has raised concerns about Singapore’s ability remain an appealing location for digital assets at a time when other hubs like Hong Kong are attracting investment. Despite this, Binance appears committed valuing even limited commercial presence in Southeast Asia by investing efforts into securing its license despite regulatory scrutiny.
As one of Asia’s leading financial hubs with reputation for innovation and good corporate governance, Singapore remains attractive digital asset option for institutional investors seeking secure custodial and digital asset services. Nonetheless, increased regulation and regulations have been proposed by MAS that firms must comply with if they wish operate within city-state’s boundaries.