“MAS warns investors of popular crypto exchange Binance.com, which is not regulated or licensed in Singapore.”
When I saw this headline on Thursday, it didn’t seem odd since crypto exchanges are not regulated or licensed yet.
Another article whose headline read “MAS orders crypto exchange operator Binance to stop providing payment services to Singapore residents” caught my full attention.
I was surprised and perplexed. We are talking about Singapore banning Binance International.
Singapore. A nation which has been inviting to fintech and blockchain technology now wants Binance International (the largest crypto exchange in the world) to stop providing payment services. Why?
Before I proceed any further, Binance International is binance.com which has more than 400 crypto available on it’s exchange. Binance Asia Services is the Singapore arm, operating binance.sg which has only 8 crypto available.
As I read the 2nd article, I became concerned. I use Binance International for most of my crypto transactions and I have a couple of them locked up for staking in there.
Taking a deep breath, I decided allow my mind to wander and daydream for 10 mins. It was after my daydream that I realized that this piece of news may not be that bad after all! Please allow me to explain.
#1 Payment Services Act
For crypto companies to operate in Singapore, they must apply for a license under the Payment Services Act. But, there’s no license awarded yet.
Those who have applied for the license are currently exempted from holding a license under the transitional arrangements in the Payment Services Act. This is spelt out clearly in this article by The Business Times.
The issue here is that Binance International did not apply for a license under the Payment Services Act while Binance Asia Services did. Therefore, Binance International isn’t allowed to operate in Singapore, let alone market to Singapore residents.
I feel that the Monetary Authority of Singapore (MAS) is likely to give Binance International some time to cease. Having to cease with immediate effect is likely to be disruptive.
#2 Alternative Crypto Exchanges
There’s no shortage of other crypto exchanges which you can use (until they get clamped down or licensed). Reputable crypto exchanges such as Kraken, Huobi Global, Blockfi, Gemini Singapore, and Tokenize Xchange are great alternatives.
All of the above mentioned crypto exchanges have interest bearing accounts or allow staking to earn rewards. A comparison has also been done recently for you to save your time and help you make a decision. You can find it here.
#3 Not The End Of The World
If you are reliant on Binance International for hot altcoins, chances are you’ll feel sian (slang for downbeat). I felt the same way too.
But this is definitely not the end of the world for crypto traders and investors in Singapore.
Huobi Global has more than 200 crypto listed on its exchange. Furthermore, the number of crypto listed on exchanges has been increasing over time too!
In addition, withdrawals can be made using the crypto exchanges I’d listed out in the previous point. And in the event some of them get clamped down, you can most probably count on Gemini Singapore as Gemini has an office in Singapore, and has been compliant so far.
2 Points You Must Remember
#1 There’s nothing much to worry about. Patiently wait for an announcement by Binance International and/or Binance Asia Services.
#2 Instead of worrying, why not improve your trading?
Here’s What You Can Do To Improve Your Trading Right Now:
#1 Register for our market outlook webinars by clicking here
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Stay calm and trade safe!