One of the world’s largest crypto exchanges, Binance Holdings Ltd., might soon get an operating license in Singapore, as it (crypto exchange) has applied for the license under a new payment law formulated by the Singapore Government.
Recently, the co-founder and CEO, CZ Zhao Changpeng of Binance stated,
“We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.”
PSA Introduced In The Country
The government of Singapore introduced the Payment Services Act on January 28, 2020, for the consumers, to strengthen their protection and promote their confidence in e-payments. According to the reports, the new law gives the supervisory power to the Monetary Authority of Singapore regarding the cybersecurity risks, money laundering and terror financing.
After the PSA was implemented in Singapore, the Assistant Managing Director of MAS, Loo Siew Yee, said that the regulatory framework of PSA would be very flexible for the payment industry. Siew Yee also mentioned that with the help of regulatory structure the new rules could be applied and the business models could be changed. He added, “The PS Act will facilitate growth and innovation while mitigating risk and fostering confidence in our payments landscape.”
Other Crypto Exchanges Will Also Apply For License
The reports suggested that after the PSA was commenced in the country it cancel the Money-changing and Remittance Businesses Act and the Payment Systems Act. The reports further stated that the Tokyo-based and London-based crypto exchanges operator, Liquid Group Inc. and Luno, have also planned to apply for the license in Singapore.
Binance already has an office in Singapore which is sponsored by Vertex Venture Holdings Ltd. According to the reports, the crypto-to-crypto trading platform, Binance, was started in the year 2017. The firm grew very fastly without getting involved with banks and their regulations. But now the firm wanted to grow its user base, therefore, it has set-up regulatory-compliant exchanges in Singapore.