- Binance’s custody unit Ceffu is planning to apply for a permit to offer crypto payment services in Singapore.
- The Crypto exchange has earlier faced challenges in the country.
- Several crypto exchanges have received central bank approval to offer payment services in the city nation.
Binance Exchange, the biggest platform for trading digital currencies globally, plans to reapply as a payment service provider in Singapore.
The exchange’s custody unit’s vice president, Athena Yu, said in a statement to Reuters:
“Once the relevant amendments to the Payment Services Act go live, and the application for a custody license opens, Ceffu will make its official application with the MAS (Monetary Authority of Singapore).”
The change occurs at a time when American regulators are scrutinizing Binance more closely.
Having formerly functioned as Binance Custody, Ceffu underwent a rebranding in February. Unlike its core service offering, the exchange’s latest endeavor would see it provide custodial services in Singapore. Still, with a catch: only corporate or institutional clients can access these services.
Binance Faced Challenges in Singapore in 2021
Binance already encountered early challenges in Singapore. Without providing any explanation beyond “strategic, commercial, and developmental” factors, its affiliate Binance Asia Services withdrew a local license application in December 2021. A swift departure from direct retail services in the city-state accompanied this.
By withdrawing its bid, the industry perceived the crypto exchange as having been impatient with the lengthy turnaround times the MAS is known for. Since then, the company has worked to find ways to comply with regulatory requirements, and it is now prepared to apply for a license with Ceffu, the new unit.
Jarek Jakubcek, head of law enforcement training at Binance, told Nikkei Asia:
“If you take a look at recent hirings, you will see that Binance is hiring people with years of experience in law enforcement and regulations,”
With success comes a particular strain, and Binance is no exception, as regulators frequently keep an eye on the exchange. The crypto exchange reaffirmed its commitment to pursuing the appropriate regulatory approvals in many regions.
Athena Yu, vice president of Ceffu, summed up the decision to choose Singapore when she said:
“Given the city’s reputation in innovation, good corporate governance, and a strong regulatory framework, it’s no surprise that institutional investors are attracted to set up shop here.”
Several Crypto Exchanges Have Received Singapore Central Bank’s Approval
Last year, the central bank granted similar approvals to several cryptocurrency firms to provide payment services in Singapore. U.S. cryptocurrency exchange Coinbase got a crucial regulatory license as it pursues its international expansion to offer regulated digital products and services.
Blockchain.com was also granted in-principle approval in October 2022 for the Major Payment Institution License, enabling it to offer Digital Payment Token services. This allows the company to continue offering its services to premium investors, institutions, operators, and project teams.
The M.A.s also granted Crypto.com in-principle approval for Major Payment Institution License. This allows the company to provide Singapore consumers with various payment services that fall under the Payment Services Act, including services for Digital Payment Tokens (DPT).
DBS Vickers, the brokerage arm of DBS and a member of DBS Digital Exchange (DDEx), also secured a Singapore license to offer digital payment token services. The company can provide direct support to asset managers and companies trading in digital payment tokens through DDEx.
These crypto companies are among several that the Central Bank has approved to operate in Singapore.
Regulatory approvals are being given in light of the rapidly expanding digital asset market, which is presently valued at US$1.91 trillion (S$2.59 trillion). At the same time, cryptocurrency firms are subject to intense regulatory scrutiny from international regulators.