According to a blog post published by Binance earlier today, addressing its customers in Singapore, the biggest crypto trader intends to cease its efforts to obtain a license to operate in the city-state from the Monetary Authority of Singapore (MAS).
The exchange will now cease to offer any crypto trading services to its customers in Singapore.
DPT services to stop by February, but action begins now
The Binance.sg blog post announces that all services with digital payment tokens in Singapore will be shut down by Feb. 13 of the approaching year.
Binance.sg says that the impact for Singaporean users will begin today, Dec. 13. In particular, the exchange will stop registering new users, customers who have not passed "know your customer" procedures will not be allowed to trade. Aside from that, all deposits of crypto and fiat will be shut down.
All user accounts must be closed by Feb. 13, 2022, and assets must be withdrawn.
Binance warns that after the aforementioned deadline in February, it will collect a maintenance fee of 5% monthly for holding the remaining unwithdrawn crypto assets. Besides, a one-time administrative fee of 20% will be charged and transferred for storing the unwithdrawn crypto.
Here's one of the reasons Binance is leaving Singapore, as per CZ
Last week, Binance.sg invested in local exchange HGX, dealing with securities: Hg Exchange. Binance has acquired an 18% stake in the platform.
Earlier in 2021, HGX obtained a license for market operations from the local MAS regulator.
Later on, head of Binance and crypto billionaire CZ tweeted that Binance's investing in the exchange was one of the factors that made Binance give up trying to gain a license in Singapore. He tweeted that the investment in the aforementioned exchange has made "our own application somewhat redundant."
However, CZ added that Binance will continue to work on developing the crypto industry in the region via its partners.