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The Binance exchange has been faced with a lot of regulatory woes this year with many regulators including the MAS proscribing the activities of the trading platform.
Binance Asia Services, the Singapore subsidiary of the Binance exchange has announced it has taken an 18% post-money stake in HG Exchange (HGX), with the deal pending regulatory approval. According to the official announcement, the partnership will help both Binance and HGX advance the integration and use of blockchain technology in Singapore.
HG Exchange is one of the pioneering outfits that is the first member-driven private securities exchange. The platform is notably powered by the Zilliqa Blockchain and was founded by leading financial institutions PhillipCapital, PrimePartners, and Fundnel. The exchange was recognized by the Monetary Authority of Singapore (MAS) and was granted a Recognised Market Operator license earlier this year.
HG Exchange is known to list the shares of private companies and it plans to expand its suite to include wines, real estate, and art.
“Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology,” said Richard Teng, CEO of Binance Singapore. “We aim to work collaboratively with HGX to enhance the blockchain ecosystem in Singapore.”
Beyond the stake it now has in HG Exchange, Binance Singapore is also heavily invested in collaborating with several stakeholders in the blockchain ecosystem in Singapore. The company said it will continue to drive collaboration with local partners, government agencies and talent, to support the sustainable growth of the blockchain ecosystem globally.
“In Singapore, we continue to work closely with key government agencies to support the growth of the blockchain ecosystem and development of requisite local talent needed,” Teng added.
The model Teng is using to steer the affairs of Binance Singapore stems from his experiences as the Chief Executive Officer of Financial Services Regulatory Authority at Abu Dhabi Global Market. Teng joined Binance in August as the trading platform sought to onboard a number of experienced players to deepen its ties with regulators across the board.
Binance Singapore Stake in HGX: Turning the Tides Around
The Binance exchange has been faced with a lot of regulatory woes this year with many regulators including the MAS proscribing the activities of the trading platform. In response, the exchange suspended the bulk of its services in Singapore and the firm has made a concerted effort to establish a local regulatory compliant trading outfit.
“As the market leader, Binance constantly evaluates its product and service offerings,” Binance revealed in one of its latest announcements. “We will be restricting Singapore users in respect of the Regulated Payments Services in-line with our commitment to compliance.”
With the emergence of Binance Singapore and the strategic investments in licensed entities, the exchange is turning the tides around in its favor and thus entrenching its bid to become a more recognized player in the Southeastern state.