Binance To Limit Functions for Singapore Users Due To Local Regulations

Binance has to limit its users based in Singapore from accessing certain products and services on its main platform but directs the users to an affiliate platform.

Business as Usual

Binance announced to Singapore users that certain functions on Binance.com will not be accessible in a month’s time. Binance promised to provide an alternative platform that is operational under regulatory exemption. ‍

Binance.sg is an affiliate of Binance that is operational under the supervision of the Monetary Authority of Singapore (MAS), indicated the announcement on September 27th in an official Binance blog. The new affiliate will function as an alternative platform for Binance’s Singapore based users, albeit with limited products.‍

“Users in Singapore may use Binance.sg for trading poairs for Bitcoin (BTC), Ethereum (ETH) and BINB currently and may expect more product releases in future. Binance.sg also provides SGD deposit and withdrawal functionality,” Binance directs its users to an affiliate platform in its announcement. 

The affected functionalities will include fiat deposit services, spot trading of cryptocurrencies, the purchase of cryptocurrencies through fiat channels and liquid swap. These are services that fall within the definition of regulated payment services pursuant to Singapore’s Payment Services Act.  

Binance cited its commitment to compliance by toeing the line imposed by Singapore’s financial watchdog. In early September, Binance started to take steps by removing all Singapore Dollar (SGD) pairs from the main platform. 

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Natural Progression 

The decision by Binance to localize its operation in Singapore is similar to the step taken when Binance.us was incorporated to meet America’s regulatory requirements. American-based users can only access the suite of products and services through the affiliate entity’s platform that is licensed. The same would eventually apply to Singapore-based users. 

The regulatory headwind has been disconcerting to many that have grown accustomed to Binance’s main platform. In the past, Binance’s main platform has been accessible in all jurisdictions. Lately, it has been facing strong resistance from local regulators, citing non-compliance by operating in a regulated market without approval. 

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Limited Range of Products and Services

The current suite of products on Binance.sg is limited and may not cater to the needs of Binance’s Singapore users. Currently, the Singapore affiliate is operating under an exemption, and to remain commercially viable, it is natural to expect the range of products to grow. This is also an assurance given by Binance in its announcement when it said, ‘expect more product releases in the future.’

The confusion and frustration surrounding the current state of affairs are likely to abate soon with regulatory approval. There will be newly imposed conditions and a more restrictive range of products and services than the main platform. This is all part of the compliance journey that is applied across the board to all crypto exchanges. 

‍Source : bsc.news