Singapore Government Bans Binance From Operating, Here's Why

Binance is considered unable to comply with money exchange rules in Singapore. *photo: doc. unsplash)

JAKARTA – Global cryptocurrency exchange Binance announced on Sunday, September 5 that it will cancel its product offering in Singapore amid warnings from financial regulators that the company may have violated payment laws.

Starting September 9, Singaporeans will no longer be able to trade cryptocurrencies or accept payments in Singapore dollars (SGD). The Binance mobile app will also be removed from Singapore's Apple and Google Play app stores.

The exchange said all SGD trading pairs will be cleared at 11:00 WIB on September 9, and users are advised to complete all peer-to-peer trades 24 hours before the deadline.

Binance's decision to stop offering certain products comes just days after the Monetary Authority of Singapore, or MAS, warned that the exchange may violate the country's Payment Services Act.

Binance first appeared on the regulator's investor alert list on September 1. The list includes “unregulated persons who, based on information received by MAS, may have been incorrectly deemed to be licensed or regulated by MAS.”

Binance is facing upheaval from financial authorities around the world for allegedly failing to comply with local regulations, such as providing exchange services without receiving appropriate licenses.

Japan, Germany, the UK, and the Canadian province of Ontario are all cracking down on Binance's exchange offerings this summer. Recently, South Africa's financial regulator warned its citizens that Binance is not allowed to operate in the country.

The regulatory backlash appears to have drawn negative attention to Binance US, which operates as a separate legal entity as a global exchange. As a result, investors have reportedly backed out of a $100 million funding round for the US exchange. The failed funding round may have prompted Brian Brooks to step down as CEO of Binance US after just three months at the helm.

Despite negative regulatory concerns, global exchange Binance processes more trades than any other platform. As of Sunday, September 5, trading volume for Binance was reported to be over $24 billion, according to CoinMarketCap.