By
Chimamanda U. Martha
April 18th, 2024
Binance is looking to legally expand its global influence and this goal is currently being threatened in countries like the United States.
The Binance exchange, the world’s largest digital currency trading platform is set to retry its luck in applying as a payment service provider in Singapore. As reported by Nikkei Asia, the trading platform will apply to the Monetary Authority of Singapore (MAS) for the Capital Markets Service License through its local subsidiary Ceffu.
Ceffu was rebranded back in February having operated earlier as Binance Custody. Unlike its core service offering, the exchange’s new pursuit will see it offer custodial services in Singapore, but with a caveat, its services will only be made accessible to corporate or institutional clients.
Binance was once in pursuit of a licensing in Singapore but it withdrew its bid back in 2021. While the exchange said it made the decision because it has already invested in a local exchange thus making the move counterproductive, the industry believed at the time that the firm was impatient with the prolonged timing the MAS is known for.
Since then, the firm has been pushing for avenues to meet regulatory demands culminating in its readiness to apply for licensing with its new unit.
“If you take a look at recent hirings, you will see that Binance is hiring people with years of experience in law enforcement and regulations,” said Jarek Jakubcek, head of law enforcement training at Binance.
Being big comes with its own unique strain and the same holds true for Binance. The exchange is constantly under the radar of regulators and it has emphasized its commitment to pursuing the right regulatory approvals in different regions.
The choice of Singapore was adequately captured by Athena Yu, Ceffu’s vice president who said:
“Given the city’s reputation in innovation, good corporate governance, and a strong regulatory framework, it’s no surprise that institutional investors are attracted to set up shop here.”
Binance in Singapore May Be a Complimentary Move
The Binance exchange is looking to legally expand its global influence and this goal is currently being threatened in countries like the United States. With the exchange known for being on the radar of big media platforms, damning investigations into its financials are always making the rounds.
In one of the latest from Forbes, the media outfit said there is some funds movement within Binance that mimics related cash management exhibited by FTX prior to its bankruptcy. While the exchange has debunked these allegations with evidence to back its claims, it has not been able to wade off investigations into Binance.US, its subsidiary in the country.
These and other investigations have led to the withdrawal of support for the exchange’s bid to acquire the remaining assets of bankrupt crypto lender Voyager Digital. With the growing uncertainty about its business in America, pursuing licensing in Singapore may come off as a smart move with huge benefits in the long term.