As speculations about the world’s largest exchange, Binance’s exit from its former hub, Singapore took over social media, the latest update cancelled out all rumours, and determined Binance’s expansion plans. Binance CEO, Changpeng Zhao took to Twitter today, declaring that the crypto exchange has acquired 18 per cent of Singapore-regulated private securities exchange, Hg Exchange (HGX).
The acquisition has come just in time when Binance was struggling with getting approval from the Monetary Authority of Singapore (MAS) to legally provide crypto services in the nation. As HGX is a recognised market operator, it could potentially help Binance cross the innumerable regulatory hurdles.
According to Binance Singapore’s Chief Executive, Richard Teng, with its latest investment into HGX, Binance seeks to expand business in Singapore by offering improved and more centralised services, backed by blockchain technology. However, interestingly, Teng had formerly worked as the Chairman at HGX, henceforth, this investment may not been as out of the blue as portrayed.
“Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology…In Singapore, we continue to work closely with key government agencies to support the growth of the blockchain ecosystem and development of requisite local talent needed” Teng told the Business Times.
Earlier this month, CoinGape reported on Binance’s alleged, upcoming exit from Singapore in lieu of regulatory inconvenience. Insider reports claimed that Binance hinted at withdrawing its application with the Monetary Authority of Singapore (MAS) because of its overdue approval of an operation’s permit. While Binance CEO declined to comment on the status of his the exchange’s local unit’s licence application in Singapore, he noted that the exchange only seeks to establish in countries with a pro-crypto approach, despite agreeing to become centralised. He asserted that both, risk reduction and Innovation driven economic growth can go hand in hand.
“When (regulators) only go by that metric, they just shut everything down, and yes that’s the best way to reduce risk. But better regulators have 2 metrics – they want to encourage innovation or economic growth and reduce risk. Regulators usually make rules that are much more pro-business when they look at both these metrics.”, The Business Times quoted its impromptu interview with CZ.
Trump Family's World Liberty Financial has unveiled big real-world asset (RWA) tokenization plans on Wednesday,…
Fintech giant Stripe has unveiled a suite of tools to enable businesses to tap into…
Metaplanet has expanded its Bitcoin portfolio with another purchase. The Tokyo-listed firm is now the…
Nasdaq has officially filed to list and trade BlackRock iShares Bitcoin Premium Income ETF with…
While the ASTER token has crashed 20% in the last 24 hours, to test the…
The U.S government has entered its first shutdown since 2019 after lawmakers failed to reach…