Binance Singapore Withdraws MAS License Application; Local Platform To Shut Down Soon
Binance's Singapore affiliate recently announced it will withdraw its application for a license from the Monetary Authority of Singapore (MAS) and would soon shut down its operations in the country.
The company did not disclose the reason behind its decision to withdraw its MAS license. However, it did mention that it made global "strategic, commercial and developmental" considerations before reaching a decision.
Binance Singapore also added that it would refocus the local unit's operations on becoming a blockchain innovation hub.
You may remember that Binance was one of the cryptocurrency companies that are interested in the idea of moving into Singapore due to the country's approach to cryptocurrencies and its desire to become a global crypto hub.
Meanwhile, the MAS mentioned that Binance Singapore had provided it with a plan for an orderly cessation of its regulated payment services, which would give users time to transfer their cryptocurrency to another wallet or third-party services.
In a letter to users, Binance Singapore said it would shut down its services by 13 February 2022. The company also warns users to use the remaining time to withdraw their assets or transfer them to third-party platforms and wallets.
Singaporeans who chose to continue using the company's services would find that they would not deposit their cryptocurrencies or fiat on Binance.sg. The creation of new accounts will also be unavailable, and that registered users whose accounts have not passed KYC will be suspended.
However, existing users may continue buying and selling cryptocurrencies using their current assets until 12 January 2022.
Users who have failed to close their accounts after 13 February 2022 would find their accounts suspended and inaccessible. However, Binance Singapore would transfer unclaimed crypto assets to an escrow account while fiat assets that are not withdrawn before the deadline will be transferred to users' personal StraitsX accounts.
Binance Singapore said they would not be held responsible for any losses resulting from a user's failure to withdraw their assets or move them to another wallet or service.
Additionally, Binance Singapore CEO Richard Teng said that the decision to close was not taken lightly. He also said that the company's main priority is to help users in Singapore move their holdings to other wallets or third-party services.
Binance Singapore came under investigation in Singapore in September 2021 when its parent company, Binance Holdings Ltd., was being probed by regulators worldwide due to cryptos' potential to be used to launder money and the risks to consumers from volatile crypto trading.
Written by John Paul Joaquin
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