[Editor’s note: this article was updated on 5 September 2021 to reflect Binance’s changes to offerings in Singapore]
Binance received on September 2 an order from the Monetary Authority of Singapore (MAS) to stop providing payment services to Singapore residents.
A representative from MAS reportedly said that the US crypto exchange which operates Binance.com, is providing unlicensed payment services in breach of the payment services act.
The company has since been placed on MAS’ Investor Alert List to warn consumers in Singapore that Binance is not regulated or licensed in Singapore to provide any payment services.
“Binance is required to cease providing payment services which are regulated under the Payment Services Act to Singapore residents and cease soliciting such business from Singapore residents,” said an MAS representative.
On September 5, Binance announced a series of changes to its offerings in Singapore, and ceased the following products and offerings in Singapore on Friday, 2021-09-10 04:00 AM UTC (12:00 PM UTC+8):
- SGD trading pairs
- SGD payment options
- Removal of the App from Singapore iOs and Google Play stores
Should I Move My Crypto To Other Exchanges?
One of the biggest concerns many Singaporean Binance users have would definitely be if they should move their crypto to other exchanges in case their digital assets are locked in Binance.
At the time of publication, Binance has yet to make any official announcement to its users in Singapore, and we should wait for an official announcement from Binance.
There is probably no need to move your funds around from one exchange to another, unless the new exchange you choose has a better user experience, more crypto pairs to trader and better security.
This is because we believe that the order from MAS is targeted at Binance’s peer-to-peer trading, where scams are aplenty.
In the unlikely case of Binance being ordered to be suspended completely from Singaporean users, the exchange will most likely provide sufficient time for users to move their funds to other wallets, and it is unlikely that the suspension will happen immediately without notice.
Another thing worth noting is that your crypto in your Binance belongs to you, and you will still be able to transfer them to another exchange at any time. Other exchanges you might want to consider include Coinbase, Gemini, Coinhako and more, or even to hot wallets like Metamask.
We also believe that Binance is actively working with MAS to sort out regulatory compliance.
Recently, Binance hired former SGX Chief Regulatory Officer for its Binance Singapore CEO, a big step highlighting their efforts in complying with all regulatory requirements.
In another effort to comply to all regulatory requirements, Binance had also rolled out mandatory KYC for all services on Binance so that bad actors can be weeded out.
We are positive that Binance will soon be removed from MAS’ investors list, just as it did with the UK’s Financial Conduct Authority back in June.
To sum up, do keep calm, and wait for official news from Binance before moving your assets around as digital asset transfers do incur network fees.
Binance is also known for being the exchange with the highest trading volume by a large margin, and has one of the most comprehensive suite of product offerings for investors. Don’t end up moving your assets out of one of the best exchanges in the world now only to move them back in again.
However, if you do consider moving your asset to your own digital wallet like Metamask you may also check out our guide here: How To Use MetaMask To Take The First Step Into The World Of Decentralized Finance
If you are a new Binance user, you can register using our referral link and get 5% off your trading fees.
Image Credit: Financial Times