Binance’s Singapore branch intends to withdraw its application for a crypto license in the city state, the world’s biggest exchange reported on Monday. Moreover, it will expel local users by mid-February next year, CoinDesk reported.
170 crypto firms applied, most rejected
Binance’s local branch, Binance Asia Services, is one of around 170 firms that have applied for a crypto license in Singapore, which would make it possible for them to offer local entities digital assets services.
Companies can offer crypto services as long as their license application is under review. By February 13 next year, Binance will stop offering services through Binance.sg and all existing accounts will be closed. By that date, users in Singapore must close their positions.
According to an email to CoinDesk, Binance Asia Services will refocus its operations to be a technology and R&D center. No new users will be accepted. Current users won’t be allowed to deposit assets on the exchange.
They can carry out crypto trades until January 12. After that, withdrawing assets to third-party platforms will be the only option until the deadline of February 13.
The watchdog in the city state, the Monetary Authority of Singapore, reported that around 100 of the firms that applied for licenses to operate in Singapore have either been rejected or withdrawn their filings. MAS has granted just four licenses.
Binance US gets ready to raise hundreds of millions
In related news, Binance’s US branch is gearing up for an IPO. After some time of working on a decentralized model, the exchange has set up an entity for its global head office. Binance US will be closing a pre-IPO funding round in the next month, founder and CEO Changpeng “CZ” Zhao said at the Bloomberg New Economy Forum in Singapore on November 19.
Earlier fundraising efforts thwarted
Earlier fundraising efforts fell through due to investor concerns over Binance US’ independence from its parent company, the New York Times reported. According to Zhao, the exchange will be raising “a couple hundred million” in the round.
Huobi taps Lion City for Asian HQ
Crypto exchange Huobi is considering Singapore for its Asia headquarters. At the end of November, a Huobi representative told CoinDesk that the headquarters would control Southeast Asia operations. They did not explain whether it will be the only region subject to such control.
Since China’s crackdown on crypto trading in May 2021, the exchange has moved many employees to its Singapore office.
