Binance, the world’s largest cryptocurrency exchange, has ended its year-long attempt to set up a bourse in Singapore.
The Singapore arm of Binance, set up as a fiat-to-crypto trading platform, will wind down operations and close by February 2022. At the time of its decision to withdraw, it was one of 170 firms that had crypto permit applications under review by the Monetary Authority of Singapore.
Major cryptos were still trading inconsistently as the news came in. Bitcoin, the world’s largest digital coin, fell as much as 3% to about $48,484. Ether, the second largest, slid as much as 4.1%.
Commentators say Binance may turn to the Middle East next. The United Arab Emirates’ central bank recently unveiled a digital-asset framework, while regulators in Abu Dhabi and Dubai are expected to begin crypto-licensing within months.
What does this mean for me?
Cryptocurrencies are still trying to get a foothold in the global financial system. The news that a large and well-established company like Binance can fail to set up operations in a key gateway market is sure to be concerning.
Regulators have been slow to decide what crypto activities to regulate, and how to do it. At the same time, crypto entrepreneurs are straining at the leash to launch products to realize their aims.
As a crypto trader, it is worth keeping an eye on cryptos’ continued fight for legitimacy. You could be set up as an early mover when broad regulation inevitably takes hold.
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