Binance Exchange May Withdraw its Application to Operate in Singapore

Binance, the world’s biggest crypto exchange platform by trading volume, is likely to step down its ambitions to secure a license to operate in Singapore as the silence from the regulatory authorities seems to be deafening to the brokerage’s executives. According to local news sources, Binance hinted at the possibility of withdrawing its applications to operate from the country’s apex market regulator, the Monetary Authority of Singapore (MAS).

As reported last month by TheCoinRise, Coinbase and Binance were tagged alongside other entities still awaiting an operating license from the MAS. From the position of Ravi Menon, the MAS Managing Director, it is not necessary for a multitude of trading platforms to operate within the region, adding that just a few innovative ones are enough to stir the financial revolution that is required.

There is no idea what the delay in granting the licenses are, however, Binance appears poised to take its business to other jurisdictions. Should the claims in the report be correct, the trading platform is set to pull the plug on its application in 2023. 

Advocacy for Regulators to Find Balance

In an interview between BusinessTimes Singapore and the Chief Executive Officer of Binance exchange, Changpeng Zhao (CZ), saw the vocal crypto boss advocate for a balance amongst crypto regulators’ desire to protect consumers, as well as the need to let innovations thrive.

“When (regulators) only go by that metric, they just shut everything down, and yes that’s the best way to reduce risk. But better regulators have 2 metrics – they want to encourage innovation or economic growth and reduce risk. Regulators usually make rules that are much more pro-business when they look at both these metrics,” The Business Times quoted its impromptu interview with CZ.

While MAS has granted a few licenses for crypto platforms to operate, most of the exchanges in operation are fronted by homegrown institutions such as the DBS Bank’s Digital Exchange. The country is signaling itself as a crypto hub, while many global operators are left sitting on the sidelines. With the industry growing at a very fast pace, Binance’s decision to explore similar opportunities elsewhere may be justified. 

From the meetings CZ has been having especially with Dubai officials, there is likely something may be in the works in the region.