Binance custody partner clarifies Singapore licensing plans

Regulation

Amid various reports about Binance trying to revive its crypto licensing plans in Singapore, the crypto exchange has come out to set the record straight. Binance told Cointelegraph that Ceffu, its “independent institutional custody partner,” is the one looking to apply for an institutional crypto custody license when Singapore’s central bank opens up applications.

Singapore has established itself as a hub for crypto businesses owing to its flexible tax policies, access to diverse tech talent, and its convenient location that allows companies to operate smoothly within the region in Asian time zones. 

The Monetary Authority of Singapore (MAS) is expected to open up the crypto custody licenses for institutions after relevant amendments to their Payment Services Act. Cointelegraph reached out to Ceffu to get their insights on the Singaporean crypto market and their upcoming plans of offering crypto custody services to institutional clients.

Related: Binance CEO responds to Forbes claims: ‘They don’t know how an exchange works’

Athena Yu, vice president of Ceffu, told Cointelegraph that Singapore has a reputation for innovation, good corporate governance and a strong regulatory framework. It’s no surprise that institutional investors are attracted to setting up shop here. She explained:

“Ceffu launched its Singapore business specifically to provide custody services to institutional investors. Once the relevant amendments to the Payment Services Act go live and the application for a custody license opens, Ceffu will make its official application with the MAS.”

According to a report published in Nekki, the world’s leading cryptocurrency exchange recently rebranded its custodial arm to “Ceffu”, which launched its institutional custody services in Singapore in November. The crypto exchange didn’t reveal their financial relationship with the rebranded crypto custodian. 

Binance withdrew its crypto license application before MAS in December 2021 and eventually closed down all operations in the country by February 2022. At the time, the crypto exchange had said that they withdrew their license because they had already invested in a regulated exchange in Singapore, and applying for a second license was “redundant.”

However, a report published in Bloomberg suggested that the crypto exchange couldn’t meet regulators’ standard of anti-money laundering measures.

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