The exchange will restrict Singaporean users from access to some cryptocurrency services starting in October. The move arrives after a previous warning from regulators.
The world’s largest cryptocurrency exchange, Binance, continues to apply restrictions to its digital currency services in several countries amid regulatory pressure.
According to a statement on Monday, the exchange will stop offering various services to Singaporean users on its most relevant platform, Binance.com.
The restricted services might include fiat deposits, cryptocurrency spot trading, and acquiring cryptocurrencies through fiat channels and also by liquid swaps. These restrictions will be enabled until October 26, 2021.
In the notice, the exchange noted that the move comes as part of a commitment to comply with local regulators.
Regulators Keep Pressuring Binance
There is no certainty on these services being on offer through Binance.sg, Binance’s platform in Singapore. It is also unclear whether Binance.com will continue to bring other services such as crypto-to-crypto and derivatives trading to Singaporean customers.
The news about the end of operations in Singapore arrived three weeks after Binance.com got listed on the investor alert list by the Monetary Authority of Singapore (MAS) earlier this month. This list makes reports on non-regulated entities that may have been perceived by mistake as regulated or authorized by the entity.
At that time, Binance stopped trading pairs and Singapore dollar payment options. It is vital to consider that Binance.sg, an exchange apart from Binance.com, did not appear on the regulators’ alert list.
As reported by The Block, Binance sets its operations in Singapore through Binance Asia Services Pte. Ltd., and this entity has opted for a license under the Payment Services Act with MAS. Currently, the entity operates under the proper exemption granted by the MAS.
The disruption of activities in Singapore arrived amid strong pressure from regulators on Binance. Over the past weeks and months, watchdogs in some countries have warned the exchange about making unlicensed operations easier.
Last week a report appeared mentioning that Binance would completely stop trading crypto derivatives in Australia.
Under Scrutiny from Regulators
The suspension of derivatives trading activities in Australia arrives amid significant regulatory pressure on Binance. Over the past weeks and months, watchdogs in some countries have been sending warning advice to the exchange about making unlicensed operations easier.
Nations that have issued warnings to the company include Malta, the Cayman Islands, Japan, Italy, Brazil, Singapore, the Netherlands, Canada, Germany, and the United Kingdom.
Last month, Binance stopped the offering of crypto derivative products in Brazil and Hong Kong. It also restricted access to options, margin products, and leveraged tokens for new accounts in Australia.
In July, the exchange had already chosen to obstruct crypto margin trading with the British pound, euro, and Australian dollar in an attempt to deactivate pressure from regulators.
The decision to stop derivatives trading in Australia strengthens the latest measures taken by the exchange. Binance recognized that the disruption of these services comes amid its attempts to create a more collaborative relationship with regulators.
By: Jenson Nuñez
