Binance,
the world’s largest cryptocurrency exchange by trading volume, is taking a
renewed step towards obtaining a license to offer its digital asset services in
Singapore. However, it wants to focus on corporate, not retail, clients this
time.
Despite
growing regulatory concerns and increasing scrutiny from US financial
commissions, Binance has decided to seek licensing opportunities in other parts
of the world. As Nikkei Asia reports, the company is looking to use its
custody arm to switch to corporate clients from retail customers. Indeed, the
exchange’s retail operations in the country were halted last year due to
pressure from local regulators.
According
to the entity’s management, quoted by Nikkei Asia, a corresponding
application to offer cryptocurrency services to corporate clients will be
applied shortly. Binance already launched a revamped business for this customer
group back in November, changing its name from Binance Custody to Ceffu. However,
the rebranding went through the market without much echo.
Ceffu’s
main objective is to provide access to the cryptocurrency market for
institutional investors and professionals looking for digital asset and custody
services. Currently, Binance plans to acquire a Singapore license for this part
of its business.
Binance’s Regulatory
Issues in Asia, the US and Australia
A
cryptocurrency exchange has found itself the target of US regulators for its BUSD
stablecoin offering, among other things. The Securities and Exchange Commission
(SEC) argues that cryptocurrency bears the hallmarks of a security and should, therefore, be subject to the same regulations as other regulated capital market
instruments.
Furthermore,
local regulators objected to a proposal by US-based Binance last week to
acquire the assets of Voyager Digital, a cryptocurrency lender that went
bankrupt. Once again, the issue was one of potential securities law violations.
Additionally, Binance is facing regulatory issues in Singapore. In 2021, the local branch of the
exchange abandoned its Monetary Authority of Singapore (MAS) license application after
several attempts while halting its services to retail customers. The MAS has
adopted stricter regulations against speculative cryptocurrency activity
involving its citizens.
The
regulator is still investigating whether Binance committed a breach of local
regulations. Indeed, the exchange allegedly offered its services to Singapore
residents without the relevant permits.
Additionally,
Binance Australia is under review by the Australian Securities and Investments
Commission (ASIC) for its derivatives services following the closure of
derivatives positions of some users falsely classified as ‘wholesale investors’.
Binance
Australia erroneously classified a small number of Australian users as
wholesale investors, allowing them to trade derivative products. After admitting
the number was 500, the exchange quickly closed its derivative positions. ASIC
decided to look into the matter and explain why the mistake occurred in the
first place.
Binance,
the world’s largest cryptocurrency exchange by trading volume, is taking a
renewed step towards obtaining a license to offer its digital asset services in
Singapore. However, it wants to focus on corporate, not retail, clients this
time.
Despite
growing regulatory concerns and increasing scrutiny from US financial
commissions, Binance has decided to seek licensing opportunities in other parts
of the world. As Nikkei Asia reports, the company is looking to use its
custody arm to switch to corporate clients from retail customers. Indeed, the
exchange’s retail operations in the country were halted last year due to
pressure from local regulators.
According
to the entity’s management, quoted by Nikkei Asia, a corresponding
application to offer cryptocurrency services to corporate clients will be
applied shortly. Binance already launched a revamped business for this customer
group back in November, changing its name from Binance Custody to Ceffu. However,
the rebranding went through the market without much echo.
Ceffu’s
main objective is to provide access to the cryptocurrency market for
institutional investors and professionals looking for digital asset and custody
services. Currently, Binance plans to acquire a Singapore license for this part
of its business.
Binance’s Regulatory
Issues in Asia, the US and Australia
A
cryptocurrency exchange has found itself the target of US regulators for its BUSD
stablecoin offering, among other things. The Securities and Exchange Commission
(SEC) argues that cryptocurrency bears the hallmarks of a security and should, therefore, be subject to the same regulations as other regulated capital market
instruments.
Furthermore,
local regulators objected to a proposal by US-based Binance last week to
acquire the assets of Voyager Digital, a cryptocurrency lender that went
bankrupt. Once again, the issue was one of potential securities law violations.
Additionally, Binance is facing regulatory issues in Singapore. In 2021, the local branch of the
exchange abandoned its Monetary Authority of Singapore (MAS) license application after
several attempts while halting its services to retail customers. The MAS has
adopted stricter regulations against speculative cryptocurrency activity
involving its citizens.
The
regulator is still investigating whether Binance committed a breach of local
regulations. Indeed, the exchange allegedly offered its services to Singapore
residents without the relevant permits.
Additionally,
Binance Australia is under review by the Australian Securities and Investments
Commission (ASIC) for its derivatives services following the closure of
derivatives positions of some users falsely classified as ‘wholesale investors’.
Binance
Australia erroneously classified a small number of Australian users as
wholesale investors, allowing them to trade derivative products. After admitting
the number was 500, the exchange quickly closed its derivative positions. ASIC
decided to look into the matter and explain why the mistake occurred in the
first place.