Singapore has strict crypto regulations.

Since Singapore started regulating the cryptocurrency industry, about 170 businesses have sought a license to provide “digital payment token services,” including crypto-related services.

Nevertheless, according to Nikkei Asia, more than 100 firms filed for a license were either denied or withdrew their applications.

Exemptions were provided to companies operating in the nation before the licensing regime’s implementation while their license applications were completed. In July, Tharman Shanmugaratnam, a senior minister, informed parliament that 90 firms were functioning under similar exemptions.

Digital currencies could be misused for money laundering, terrorism financing, or proliferation financing because of the speed and overseas nature of the operations, a spokesman for the Monetary Authority of Singapore (MAS), the nation’s central bank and crypto industry authority, stated. According to the spokesperson,

“In Singapore, digital payment token service providers must comply with requirements to mitigate such risks, including the need to conduct proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions.”

Only DBS Vickers Securities, a subsidiary of DBS Group Holdings, Southeast Asia’s biggest bank; digital payments startup FOMO Pay; and Australia’s Independent Reserve are now mentioned as licensed businesses on the MAS website. In November, the MAS stated that Singapore aspires to become a worldwide cryptocurrency powerhouse.

We are growing very rapidly. Investors are gradually exploring cryptocurrencies and digital assets,” stated DBS’s head of capital markets and chairman of the bank’s crypto exchange in September. 

In September, the national bank forced Binance to halt selling cryptocurrency services to citizens. Binance stated last week that its Singapore platform would be closing down.

The cause for the closing of Binance’s Singaporean exchange, according to CEO Changpeng Zhao (CZ), was an 18 percent investment in Hg Exchange (HGX), a licensed securities exchange in Singapore. However, according to Bloomberg, the true reason is that Binance failed to fulfill the conditions for an authority to drive a cryptocurrency exchange.

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