Binance, one of the world’s largest crypto exchanges with headquarters in Malta, has applied for an operating license in Singapore in an attempt to expanding its user base while complying with regulations.
Recently, the Singapore Monetary Authority opened its doors to cryptography with the implementation of the Payment Services Act. This legislation is intended to control crypto-currency payments and trading using as a framework laws currently regulating conventional fiat payment services. Any interested party must apply for the appropriate Singapore licenses, including a standard payment institution license, a money-changing license, and a major payment institution licence.
Changpeng Zhao, Binance CEO, commented on the expediency of the process: “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.”
Binance Is Not Alone
Local governments are still trying to decide how to regulate crypto-currency exchanges as they’re expanding into new markets. The Payment Services Act is Singapore’s first legislation of its kind, regulating crypto-trading and digital payments.
Binance isn’t the only international firm seeing the potential of the new regulations in Singapore. The London-based crypto exchange operators Luno, and Tokyo-based Liquid have also expressed their intent to apply.
It is worth noting that, Singapore announced that Payment Services Act has come into force, which requires all Singapore-based Crypto companies and exchanges to register first and then apply for a license to start its operations within the country.
Singapore’s Payment Services Act 2019 (PSA) offers Digital Payment Token (DPT) services – essentially covering all crypto firms and exchanges – under the existing anti-money laundry (AML) and counter-terrorist financing (CTF) laws.
As of the launch date, businesses will have one month to register with Monetary Authority of Singapore (MAS), confirming that they are based in Singapore and run a DPT company. When businesses have registered, there is a six-month grace period during which they are expected to apply for a license from a payment institution.