Binance Holdings, a global cryptocurrency exchange platform, has applied for an operating license in Singapore under the city-state’s new payments law, the company’s co-founder and CEO told Bloomberg.
“We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded,” said Changpeng Zhao.
Photo credit: Burdun / 123RF
Commencing last month, the new Payment Services Act provides licenses for various payment providers as well as platforms dealing with cryptocurrencies such as bitcoin and ether. The law also seeks to address cybersecurity risks, money laundering, and terrorism financing.
“The new PS Act will enhance the regulatory framework for payment services in Singapore, strengthen consumer protection, and promote confidence in the use of e-payments,” the Monetary Authority of Singapore said.
According to the bill’s second reading, there will be three classes of licenses: a money-changing license, a standard payment institution, and a major payment institution.
Founded in 2017, Malta-based Binance started as a cryptocurrency-to-cryptocurrency trading platform. It now has 10 million users globally, with US$350 million in profit by the six months ended June 30, 2018, mostly from transaction fees.
The company is backed by Vertex Venture Holdings, the venture capital arm of Singapore government-owned Temasek Holdings.
Aside from Binance, Tokyo-based crypto exchange operator Liquid Group and London-based Luno are also looking to apply for the licenses under the city-state’s new payments law, according to Bloomberg.
Editing by Charmaine de Lazo
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