Binance Asia Service buys 18% of the shares in HGX Singapore
Binance Asia Service (BAS, also known as Binance.sg), the Singapore branch of the world’s leading cryptocurrency trading platform, has invested in a private equity exchange – HG Exchange (HGX), according to a December 8 release.
Accordingly, BAS announced that it would own 18% of HGX shares following the transaction. Richard Teng, CEO of Binance Singapore, stated that the platform plans to work with HGX to promote the blockchain ecosystem in the region:
“Cryptocurrency and traditional financial services continue to converge. Through this investment, we aim to partner with HGX to improve our range of products and services based on blockchain technology.
In Singapore, we continue to work closely with government agencies to support the growth of the blockchain ecosystem and develop much-needed local talent. ”
HGX was founded by well-known organizations such as the brokerage company PhillipCapital, the financial services group PrimePartners and the investment company Fundnel. It is also supported by the Zilliqa blockchain platform. The Monetary Authority of Singapore (MAS) recently granted HGX an accredited market operator license.
Problems with Binance regulation are not over yet
Although Binance has acquired an 18% stake in a private exchange in the region and has partnered with a regulated market operator, Binance has yet to consolidate its position in Singapore.
According to previous reports, the company was planning to withdraw its application from the region. Singapore is a country that can hardly be beaten. Also, given the growing regulatory threat in different parts of the world, the exchange run by CZ is now looking for another location to build its headquarters.
It is important to note that Binance’s Singaporean entity is exempt from a license under the Payment Services Act (PS) Act to provide digital tokenization services for payments. In short, the Binance Asia Services license is still being processed by MAS.
This means that the platform is allowed to provide the service until there is a response from the regulatory authority, be it an approval, a rejection or a revocation. If Binance plans to revoke its license, users in the region will not be able to legally buy and trade crypto assets through the platform.
In early September this year, MAS added Binance.com to its Investor Alert List, which lists a number of unregulated platforms that could be falsely viewed as issued by the agency, permit or management. Shortly thereafter, a Binance official clarified that the two institutions – Binance.com and Binance Singapore (Binance.sg) – are separate platforms.