Binance is currently facing challenges in achieving its objective of lawfully expanding its worldwide influence in nations such as the United States.
The Binance exchange, the largest cryptocurrency exchange platform, is getting ready to submit a new application in Singapore in the hopes of being approved as a payment processor.
According to Nikkei Asia (1), the brokerage firm would apply for a Capital Markets Service License to the Monetary Authority of Singapore through its subsidiary, Ceffu.
Ceffu was formerly known as Binance Custody until it underwent a rebranding in February. In contrast to its primary service offering, the exchange’s new venture will involve providing custodial services in Singapore
However, there is a catch: the exchange’s services would only be available to institutional or corporate customers.
Binance withdrew for a license to operate in Singapore in 2021 after expressing interest in obtaining such a permit. The exchange has stated that it decided since it had previously invested in a local market, making a move unproductive.
However, at the time, the sector believed that the company was dissatisfied with the drawn-out process that the MAS is known for.
Since then, the company has been working hard to find new ways to satisfy regulatory requirements, and as a result, it is now prepared to apply for a license with its new division.
“If you begin looking at the most recent recruitments, you will see that Binance is employing staff with many years of expertise in law enforcement and legislation,” said Jarek Jakubcek, head of law enforcement education at Binance.
Being a major player in every market comes with its own set of challenges, and Binance is no exception to this rule. The regulatory bodies are keeping a close eye on the exchange at all times, and the exchange itself has highlighted its dedication to pursuing the appropriate regulatory approvals in each of the many locations.
Athena Yu, Ceffu’s vice president, mentioned something that encapsulated the selection of Singapore very well when she said:
“Given its reputation for innovation, sound financial reporting, and a strong regulatory framework, it should come as no surprise that large shareholders are interested in establishing themselves in this city.”
Binance Taking Each Step Carefully in its Expansion Plans
This objective, which is presently being challenged in nations such as the United States, is being pursued by the Binance exchange to expand its global reach legally.
Damaging inquiries of the exchange’s financial statements are always being reported because it is well-known to be on the radar of major media platforms.
Forbes, a media organization, stated in one of its most recent articles that some movements of funds within Binance matched the comparable financial management demonstrated by FTX before the company’s bankruptcy.
Although the exchange has refuted these allegations and provided proof to support its assertions, it has not been successful in avoiding investigations into Binance.US, which is the company’s affiliate operating in the country.
As a result of these and other investigations, backing for the exchange’s request to buy the remaining assets of the defunct cryptocurrency lender Voyager Digital has been withdrawn.
Because of the growing unpredictability surrounding its operations in the United States, acquiring licensing in Singapore may be an astute choice that will bring enormous rewards in the long run.