Amidst expectations about exiting the market in Singapore, Binance has given out a statement canceling out all the previous rumors. More than that, The global crypto exchange is planning to expand its operations in the country.
Previously, Binance had some struggles with getting approval from the Monetary Authority of Singapore. Moreover, they were trying to legally register themselves so as to provide crypto services in the country.
However, the global crypto exchange has just announced an 18% stake in the Singapore-regulated Hg Exchange. With this, they are aiming to expand business in Singapore via improvements and more centralized services. Also, since HGX is a recognized market operator, it can potentially help Binance clear regulatory hurdles.
HGX exchange claims itself as Southeast Asia’s first member-driven crypto exchange. Also, its founding members possess deep domain expertise and a network of 500,000 investors.
On this announcement, Binance Singapore’s Chief Executive, Richard Teng said:
“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.”
Many had speculated that Binance is more likely to withdraw its application for approval from the Monetary Authority of Singapore. This is due to the overdue approval of an operating permit. Although the CEO of Binance, Changpeng Zhao, declined to comment, he hinted that they’ll pursue countries having a ‘pro-crypto’ approach.
Also, he added that risk reduction and innovation-driven economic growth can go hand in hand.