Binance pulls out of Singapore, shuts down deposits and trading effective immediately

BINANCE Singapore unit has withdrawn its application for a crypto permit by the Monetary Authority of Singapore (MAS) to operate in the city-state and will shut down its operations in the financial hub by Feb 13, it said in a statement on Monday (Dec 13).

Effective immediately, registrations, crypto and currency deposits as well as trading on Binance.sg will be closed.

Users will be able to buy and sell crypto using their existing assets until Jan 12, and all accounts must be closed by Feb 13. 

"Our decision to close Binance.sg was not taken lightly. Our immediate priority is to help our users in Singapore transition their holdings to other wallets or other third-party services," said Richard Teng, chief executive of Binance Singapore.

"I am grateful to the MAS for its ongoing assistance to Binance Asia Services and we look forward to future opportunities to work together."

Earlier this month, The Business Times reported that Binance's local arm is considering withdrawing its application to operate in Singapore, as its application to operate in the city-state remained in regulatory limbo.

The crypto exchange has been waiting on the sidelines for its local affiliate, backed by Temasek-linked Vertex Ventures, to clinch a permit for months even as smaller operators get the go-ahead.

The decision comes as Binance, the world's largest cryptocurrency exchange, is set to announce its decision for a global home soon. This move will put Singapore out of the running, paving the way for a Europe and Middle Eastern push.

All Binance.sg users will be informed via email of what steps to take as the trading platform closes. Users on the local platform will be required to close all open positions and withdraw their Singapore dollar and cryptocurrency assets by Feb 13.

The move comes as Binance last week took an 18 per cent stake in Singapore-regulated private securities exchange, Hg Exchange (HGX).

The acquisition was believed to help with Binance's regulatory hurdles, as HGX was recently granted a recognised market operator licence from the MAS. This acquisition is still subject to regulatory requirements.

Binance also said it will set up a blockchain innovation hub in Singapore, exploring initiatives such as incubation programmes, blockchain education and further investment opportunities.

This article was first published in The Business Times. Permission required for reproduction.