Why Binance Withdrew Its Singapore License Application And What It Means For Zilliqa

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Binance CEO Changpeng Zhao (CZ) has set the record straight regarding its company’s withdrawal from its application for a crypto trading license with the Monetary Authority of Singapore (MAS).

Since the summer, the struggling crypto exchange has been at odds with global regulators. This has forced many changes in the way Binance does business, including reducing leverage to a maximum of x20. And, the end of September saw it stop escrow deposits for Singaporean users.

More recently, events in Singapore have accelerated. Not only did Binance withdraw its application for a crypto trading license in the sovereign island city-state, the company also announced that it will cease operations as of February 13, 2022.

Binance Singapore will close next year

In one announcement To its Singaporean users on Monday, Binance announced its intention to withdraw its license application from MAS and terminate its services.

The post called for a schedule of actions to facilitate the removal from the region, immediately starting with the shutdown of new users to the platform.

He also advised existing users to withdraw funds before the February 13 deadline, warning that failure to comply would trigger an expensive withdrawal process to recover the funds.

The company said it was not a decision taken lightly and apologized for the inconvenience.

“The decision was not made lightly, and we apologize in advance for any inconvenience this may cause.”

CZ explains the plan for the future

By explaining the reasoning behind the decision, CZ said Binance had acquired “a significant investment” in the already regulated HGX exchange. He sees this as a better way forward, which at the same time makes Binance’s own app “somewhat redundant”.

Clarification. Binance made a significant investment in the regulated HGX exchange last week. This investment has made our own application somewhat redundant. We will continue to work with our partners to develop the crypto industry in Singapore. From.

According to The times of the straits, the “significant investment” CZ was talking about amounts to almost one-fifth of HGX’s equity, 18% to be exact.

HGX recently obtained a “Recognized Market Operator” license from MAS and also lists alternative assets in wine, fine art and real estate. Additionally, HGX is run on the Zilliqa blockchain.

Commenting on the acquisition, Richard Teng, CEO of Binance Singapore and former CEO of HGX, said the collaboration will improve products and services for everyone involved.

“Traditional crypto and financial offerings continue to converge. Through this investment, we seek to work with HGX to improve the product and service offerings supported by blockchain technology.

As of the fourth quarter of 2020, the Zilliqa ecosystem includes the Singapore dollar stablecoin XSGD. And while Zilliqa has been caught in a persistent four month downtrend, all eyes are now on ZIL $ regarding how the price action will react to this news.

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