Cryptocurrency exchange platform Binance.com has been placed by the Monetary Authority of Singapore (MAS) on its Investor Alert List on Sept 2.
Entities listed on the list are not licensed or are exempted from licensing the provision of any regulated financial services in Singapore. The entities on the list may also have been wrongly perceived as being licensed or regulated by the Singapore central bank.
The move follows a series of global regulatory crackdowns on Binance.com.
On July 30, 2021, India’s anti-money laundering agency said it was investigating whether Binance Holdings had a role to play in an ongoing probe involving betting apps.
On the same day, Malaysia ordered Binance Holdings to disable Binance.com and its mobile applications in Malaysia within 14 business days from July 26 after the country alleged illegal operations.
See: Singapore to follow up with Binance in wake of global crackdown and SC clamps down on Binance for illegal operations in Malaysia
On June 28, 2021, the UK’s financial watchdog banned Binance Markets from doing any regulated business in the country.
See also: UK financial regulator bars crypto exchange Binance Markets
On June 25, 2021, Japan’s Financial Services Agency (FSA) also issued a warning that Binance is not registered to do business in the country.
MAS had said, in June, that it was “aware of the actions taken by other regulatory authorities against Binance and will follow up as appropriate with [Binance Asia Services].”
The central bank added, at the time, that it was reviewing Binance Asia Services’ application for a license.
Binance Asia Services operates the Binance.sg platform and is currently exempted from holding a license under the Payment Services Act (PSA).
See also: Binance Singapore names ex-SGX executive Richard Teng as CEO
Update
In a follow-up statement sent to the media on the evening of Sept 2, an MAS spokesperson says the operator of Binance.com may be in breach of the PSA after a review of the cryptocurrency company's operations.
The breach stemmed from Binance.com continuing to provide payment services Singapore residents as well as soliciting such business without an appropriate license.
"As Binance did not apply for a licence under the PS Act, MAS has listed Binance.com on the Investor Alert List (IAL), to warn consumers in Singapore that Binance is not regulated or licensed in Singapore to provide any payment services. Binance is required to cease providing payment services which are regulated under the PS Act to Singapore residents and cease soliciting such business from Singapore residents," says the spokesperson.
"Binance Asia Services, which operates Binance.sg, has submitted a licence application under the PS Act, and is currently exempted from holding a licence for the provision of digital payment token services under the transitional arrangements in the PS Act."
"MAS has been engaging Binance Asia Services and expects Binance Asia Services to immediately begin an orderly suspension of its facilitation of transfers of digital payment token assets between Binance Asia Services and Binance. Binance Asia Services will inform its customers of the appropriate arrangements as soon as practicable," it adds.
The spokesperson further added that Binance Asia Services' licence application remains "under review", pending its ability to show that it is able to meet the PSA's requirements.
Photo: Bloomberg
