More trouble could be brewing for Binance.
The world’s largest cryptocurrency exchange is actually many different companies which license the Binance name, and engage in business per country or region.
Because of this, legal trouble often presents itself to the subsidiaries, but not to the original Binance corporation.
This would be fine, except that continued legal action against Binance’s many subsidiaries could potentially land Binance itself in the hot seat.
This time it’s the Singapore monetary authorities which have issued a warning to investors about Binance.sg—the Singapore subsidiary of the Binance corporation.
Let’s take a look at what the authorities said:
Singapore tells Binance to stop providing payment services over possible law breach https://t.co/IgUizBS4V2
— South China Morning Post (@SCMPNews) September 2, 2021
— CoinDesk (@CoinDesk) September 2, 2021
The industry’s largest crypto exchange, Binance, has been added to the Monetary Authority of Singapore’s (MAS) Investor Alert List today.
Binance.com, rather than the exchange’s Singaporean platform, Binance.sg, is listed. It is unclear whether Binance.sg will be classified similarly.
The MAS adds entities to the Investor Alert List that it believes “may have been wrongly perceived as being licensed or regulated by MAS.”
#Crypto exchange https://t.co/RW0Xhzk9o4 has been added to the Monetary Authority of Singapore's investor alert list of unregulated entities. Its Singapore entity — https://t.co/5i1CU2HE4x — operates under an exemption granted by MAS.https://t.co/a4AT0zWp1i
— Michelle Lim (@limslmichelle) September 2, 2021
#Singapore needs to work and understand better with #Binance
. I believe there is always a solution to keep the largest #crypto exchange alive here.#CryptoNews #BinanceSmartChain #cryptocurrency #Bitcoin 🇸🇬https://t.co/SRt1QOxtqT
— Gritty Hustler (@Gritty_Hustler) September 2, 2021
Binance.sg, is run by Binance Asia Services Pte Ltd, one of the exchange’s many registered companies in Singapore. Binance Asia Services currently has an exemption from Singapore’s Monetary Authority from having a licence under the country’s Payment Services Act. But Binance.sg only has a fraction of the available tokens to trade that the Binance mothership has, with only bitcoin, ether, and BNB listed.
Earlier in August, Binance CEO Changpeng Zhao tweeted that the exchange was pivoting from “reactive compliance to proactive compliance.”
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