Cryptocurrency: Binance affiliate cancels crypto license application in Singapore

An affiliate of Binance in Singapore announced on Monday, Dec. 13, that it has withdrawn its application for the local crypto license. The company further said it had taken this action to slow down its digital payment business in the region.

According to Reuters, financial regulators and governments worldwide have heightened surveillance and audit on the cryptocurrency industry this year. There are also instances where they have also amplified regulations that made things very challenging to crypto exchanges like Binance that is one of those that have continued to prosper in a mostly unregulated environment despite the intense scrutiny.

Now, Singapore is one of the global pioneers in developing a legal licensing scheme for cryptocurrency firms and Binance Asia is one of the more than 100 crypto companies that have submitted an application for a license to operate in the country. However, the company later decided to just cancel its application and said it would just re-focus its operations on the blockchain innovation hub in Singapore.

"Taking into account strategic, commercial and developmental considerations globally, Binance Asia Services has withdrawn its application to the Monetary Authority of Singapore (MAS) for a license to operate a regulated cryptocurrency exchange in the country," Binance stated after canceling its application.

Binance in Singapore offers services of trading fiat and cryptocurrencies will mellow out its operations and shut by Feb. 13, 2022. By this time, users can no longer deposit fiat or cryptocurrencies on Binance SG's platform. In September, the company shared that due to crypto regulations in the country, Singaporean users of its platform will not be able to trade on its international platform as well.

CoinTelegraph reported that starting Dec. 13, Binance SG has already stopped accepting new users. The company also issued a notice for existing users to withdraw their crypto assets before the deadline which is Feb. 13 of next year because they will not take responsibility if the users' assets are held after the deadline.

"With immediate effect, users must start to make plans to withdraw their crypto and fiat from Binance.sg.," the company said. "Users can only withdraw and move their crypto to third-party platforms or crypto wallets; and/or withdraw their SGD."