Suspected of violating the payment service law, Binance suspends trading of certain products in Singapore

Binance, a cryptocurrency trading platform suspected of violating the Payment Services Act, said it would stop offering some product transactions in Singapore. However, this move mainly involves Binance.com and does not affect the services provided by Binance.sg, the Singapore company of Binance. Interviewed users and industry insiders also believe that this will not seriously affect investor confidence in compliant cryptocurrency companies.

The day before yesterday (September 5), Binance issued a blog post stating that it will stop offering SGD currency trading and payment options, and will also remove it from Apple and Google’s Singapore iOs and Play Store mobile app stores.

The company calls on users to complete all relevant person-to-peer transactions by this Thursday at the latest, and remove relevant transaction advertisements to avoid transaction disputes.

However, the company emphasizes that Binance Singapore Binance.sg is an entity independent of Binance.com, has a local management team, and does not provide any products or services through Binance.com. In other words, the operation of Binance.sg is not expected to be affected.

Binance, the world’s largest cryptocurrency trading platform, was listed on the Monetary Authority of Singapore’s list of investors to be wary of last Thursday.

A spokesperson for the Monetary Authority stated that Binance may violate China’s Payment Services Act. It has not applied for relevant licenses under the Payment Services Act to provide Singapore residents with and seek them to use its payment services.

As for Binance.sg, it is operated by Binance Asia Services (BAS) registered in Singapore. BAS has previously applied for a license under the Payment Services Act. Currently, under the transitional arrangements of the Act, it is exempted from licenses to operate digital payment token services in the country.

The HKMA will take action against non-compliant businesses

Binance.sg received a capital injection from Vertex Ventures, a subsidiary of Temasek Holdings, in 2018.

In an interview with Lianhe Zaobao, Xie Fulai, the founding chairman of the Singapore Fintech Association and the chairman of the Blockchain Association, pointed out that the Monetary Authority has strict and clear guidance on cryptocurrency regulations and regularly clarified this to industry players.

He said: ” The HKMA has actually taken a positive move, indicating that it is prepared to take enforcement actions against non-compliant businesses. Indirectly, this has made compliance businesses more at ease and provided them with a level playing field. “

An industry operator, who asked not to be named, said that he was not surprised by the HKMA’s actions because Binance’s parent company has no local license, but has been providing services to Singaporeans through its license-exempt subsidiary Binance.sg.

It is understood that the trading platform Binance.com of Binance’s parent company and the local Binance.sg trading platform are operated independently, and the service content provided is different. The latter is mainly based on over-the-counter trading, investors only buy and sell mainstream cryptocurrencies through the platform; the former trading model is more like a securities firm, covering cryptocurrency futures, leveraged trading and derivatives and other higher-risk investments .

The industry said: ” The HKMA needs to formulate regulations to protect Singaporean investors and ensure that they do not take excessive risks. “

Media workers surnamed Huang have accounts on both Binance trading platforms, totaling more than US$3,000. He said that he mainly conducts transactions in U.S. dollars, so Binance stopped offering SGD payment options and removed mobile apps, etc., which did not affect him much. But he will consider transferring the money to Binance.sg account or other trading platforms.

He also said: “I don’t think this will seriously affect my confidence in investing in cryptocurrency, because our country has always done a good job in cryptocurrency supervision. As long as it is a compliant and licensed cryptocurrency company, they are basically reliable. . Of course, I will continue to monitor developments.”

In Binance’s telegram, most users are concerned about whether this will affect their account transactions. Some users said that they understand the intention of the HKMA.

Some users said that the derivatives investments provided by Binance.com often use leveraged transactions and are not suitable for general retail investors because they may lose all or even more of their invested funds. The HKMA is naturally extra cautious in such transactions.

Since April of this year, Binance has been facing tightened reviews by various regulatory agencies. Among them, Binance Markets was banned by British regulators in June because of concerns that the platform would not be able to effectively prevent money laundering and other financial crimes.

The founder of Binance is Changpeng Zhao. He has made his fortune through the cryptocurrency business. He recently made the Forbes list of the 50 richest people in Singapore, ranking 22nd with a net worth of US$1.9 billion.

A Binance spokesperson said that Binance.com is working closely with the Monetary Authority and other regulatory agencies to make any required service changes to comply with relevant regulatory standards.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/suspected-of-violating-the-payment-service-law-binance-suspends-trading-of-certain-products-in-singapore/
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