Binance Singapore has withdrawn its application for a license to operate a cryptocurrency exchange and will close its trading platform in the city-state by February 13.
Binance Singapore users will be notified via email of the actions they need to take when the platform ceases operations. The company said in an emailed statement that registrations, crypto and currency deposits, and transactions on the Binance Singapore platform will be closed with immediate effect.
âWe always put our users first, so our decision to shut down Binance.sg was not taken lightly,â said Richard Teng, CEO of Binance Singapore. “Our immediate priority is to help our users in Singapore transfer their holdings to other wallets or other third party services.”
Binance Singapore was among some 170 companies that had applied to the Monetary Authority of Singapore (MAS) for a license to provide crypto services. The company was operating under a temporary exemption during the licensing process.
The company said its operations in the city-state will now become a hub of blockchain innovation with initiatives including incubation programs, blockchain education and investments.
Last week Binance Singapore invested in Mercury exchange (HGX), a regional private stock exchange. The deal gives Binance Singapore an 18% post-money stake in a Singapore-based exchange that was licensed as a MAS-recognized market operator earlier this year. The agreement will be subject to regulatory requirements.
Binance co-founder and billionaire CEO Changpeng Zhao, who goes by name CZ, then posted on Twitter that the investment in HGX contributed to his decision to withdraw the company’s license application.
Binance was created in 2017 by Zhao and his co-founder He Yi, who together built it into the world’s largest cryptocurrency exchange in terms of transaction volume, according to CoinGecko’s ranking.
Although the company does not have an official seat, Binance’s main trading platform still managed to record an average daily trading volume of $ 2 billion and over 1.4 million trades per second, according to its website. Zhao recently told Bloomberg that Binance has already decided on the location of its headquarters and will announce it soon.
Updated: December 13, 2021
A clarification from Binance co-founder and CEO Changpeng Zhao was added in the seventh paragraph.