Largest Cryptocurrency exchange Binance revokes Singapore by withdrawing its local license
World's largest cryptocurrency exchange platform Binance is closing its support in Singapore without prior notice. When asked, the platform operatives declined to answer on reasons for shutting down in a specific country. On Monday, the platform withdrew its local license, which has been used for quite some time.
Among top exchange platforms, Binance remains the crowned king for crypto-related programs. From selling and buying to exchange, depositing for interest and with a vast community, the platform is thriving with the growing demand for crypto assets.
Though some controversies and scrutiny have been received globally, the platform still functions as one of the trusted and biggest exchanges. Though Binance said it had 'strategic' reasons, other than that, there was no comment. Individuals who invest in the platform's currency is in dire need of an answer.
Singapore remains one of the global hubs for innovations with its newest technology and innovation practice. The country came a long way with a speedy process of development. From what we see on a global view, any developed country would be interested in holding crypto-related power as it may be the next big thing. Developed countries practice the procedure of managing financing assets before others. In the case of crypto, there is no difference.
Though crypto prices are unstable and many people lost their life savings by investing/selling at the wrong time, it still holds tremendous value for millions of people. Crypto controversies are some of the most highlighted of the century.
Financial watchdogs and governments also had mixed feeling towards the evolvement of crypto. A considerable part of Collaboration remains with Binance. The platform currently has a $535.04 (+0.65%) stock price with a total market cap of 89.245 billion.
Binance has a calculating supply of 166.8 million, far greater than other big fishes in the pond. Binance, in a report, said in February, its trading fiat and cryptocurrencies will close in Singapore. Local regulations have been having an issue with the platform for quite some time, and in September, Binance talked about Singaporean users. They will not use the venue before the deadline as the exchange platform takes its business elsewhere.
Cryptocurrency is quite popular in Singapore, making comparatively straightforward regulatory management. Also, the operating environment among global forerunners is developing gradually, said Reuters in a report. Due to pandemic related challenges, unregulated climate occurred within the infrastructure, causing regulations to break down. Systematic changes happening drastically indeed made an impact on the decision.
At the same time Singapore got its service removed, Binance started developing a crypto exchange in Indonesia. The joint venture was led by Telkom Indonesia's $830 million venture capital arm. In response, Binance talked about expanding Indonesia's blockchain ecosystem.
Telkom Indonesia, MDI Ventures (MDI) are the largest telecom companies in Indonesia. Starting with the country's largest firms gives the platform the initial boost required to grow at an expected margin. The announcement said, "Binance will provide world-class asset management infrastructure and technology to support the development of the new exchange platform."
Binance Asia Services spokesman of Monetary Authority Singapore said their plans for orderly cessation 'will allow sufficient time for customers to seek alternative providers.' In a term, they are not wrong, but at the same time, it shows an unhealthy balance of a large platform revoking business from a developed country.
Though Singapore will not sit quiet and watch what happens, their over-investment and regulatory body are sufficient to develop an alternative method for the people to stay in the crypto exchange circle.
Co-chairman of Blockchain Association Singapore, Chia Hock Lai, said Binance withdrawal application "signifies again Singapore's license regime is quite stringent."
Hong Kong, Britain, Germany, and Japan also targeted Binance to raise customer issues such as money laundering checks.