Binance Holdings takes additional steps in applying for a crypto license in Singapore
Since cryptocurrency exchanges expand into new countries, local authorities were still struggling to decide how to control them. The Payment Services (PS) Act is a forward-looking and versatile mechanism for the supervision of payment systems and payment service providers in Singapore.
Starting last month, the new Payment Services Act has offered licenses for multiple payment services along with cryptocurrency platforms such as bitcoin and ether. The legislation aims to solve cybersecurity threats, embezzlement and the funding of terrorism.
Under the PS Act, crypto companies are required to file a registration first and then qualify for an operating license within the authority. Once firms are registered, a six-month period will be given in which they are required to apply for the payment institution license.
According to the bill, there will be three classes of licenses: money changing license, standard payment institution, and major payment institution.
Binance Holdings –a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies, has submitted an application for operating license in Singapore.
According to a report from Bloomberg, Binance co-founder and CEO “CZ” Zhao Chanpeng said in an interview that the application was “pretty fast”, and the local Singaporean authorities were fair during the entire process.
Recently, the organization has added 15 cryptocurrencies via Simplex –an Israeli fraud-free payment processor.
Founded in 2017, Binance Holdings is a Malta-based company and now has more offices across Asia. The company is supported by the venture capital arm of Singapore government-owned Temasek Holdings, Vertex Venture Holdings.
The firm was once a pure cryptocurrency-to-cryptocurrency trading platform that aims to be the infrastructure services provider for the blockchain ecosystem, now it is on the process of adding fiat payment gateways.
To date, the organization has over 10 million users globally, with US$350 million in profit by the six months ended June 30, 2018, mostly from transaction fees. The organization is currently attempting to expand its user base while staying regulatory compliant.
Binance is not the only one to see the opportunity of Singapore’s new regulations. Tokyo-based crypto exchange operator Liquid Group and crypto exchange operators Luno, based in London have also shown interest in applying.
Singapore’s new law implies that cryptocurrency companies will have to operate their activities to a high compliance level, this also gives Singapore’s Monetary Authority credibility and official authorized status.
“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 on a statement.