It has been reported that Binance.sg stopped onboarding new users and will not allow Singaporeans to deposit cryptocurrencies or fiat on the exchange. By February 13, 2022, Binance plans to “wind down” all services that relate to dealing with cryptocurrency tokens.
“With immediate effect, users must start to make plans to withdraw their crypto and fiat from Binance.sg. Accounts of registered users who have not passed KYC will be suspended.”
However, Binance Singapore users are currently allowed to buy and sell crypto, using their existing assets until January 12, 2022. Starting January 13, Binance.sg users will be barred from buying and selling crypto.
“Users can only withdraw and move their crypto to third-party platforms or crypto wallets; and/or withdraw their SGD. All accounts must be closed by 13 February 2022.”
The report said that Binance plans to make further arrangements to release users’ assets upon an official request to the company’s customer service. After the final date, Binance will not allow any Singapore users to close positions or withdraw crypto assets.
The announcement read:
“The locked crypto assets will be held in an escrow account and your fiat assets will be transferred to your StraitsX Personal Account. We recommend that you take action as soon as possible before the deadline for account closure (13 February 2022). Please note that BAS will not be held responsible for any losses that result from your failure to withdraw your assets and close your account by 13 February 2022.”
Likewise, Changpeng Zhao, the CEO of Binance, explained that the exchange will still have a presence in the Singapore market and that the withdrawal was connected to the recent acquisition of the Singapore-regulated private securities exchange Hg Exchange (HGX). The 18% stake signaled an attempt to overcome the existing regulatory hurdles, as HGX was recently granted a recognized market operator license from the MAS.
Despite the ongoing regulatory scrutiny, Binance continues to explore new jurisdictions for setting up localized crypto exchanges. Binance is reportedly in talks with Indonesia’s richest family, the Hartonos, for launching an exchange service. According to a Bloomberg report, Binance may soon finalize a crypto venture with Hartonos-controlled PT Bank Central Asia (BCA).
Thus, if approved, the new BCA partnership will allow for the launch of a second crypto venture for Binance in Indonesia. The crypto exchange is also planning to expand to the United Kingdom in the next six to 18 months amid regulatory resistance.