Singapore central bank says Binance may be in breach of rules

SINGAPORE: Singapore central bank said on Thursday that Binance, one of the world's largest cryptocurrency exchanges by trading volume, could be in breach of local laws and should stop providing payment services to the city-state's residents.

"MAS has reviewed Binance.com's operations and is of the view that Binance, the operator of Binance.com, may be in breach of the Payment Services Act," the Monetary Authority of Singapore (MAS) said in a statement.

"Binance is required to cease providing payment services ... to Singapore residents and cease soliciting such business from Singapore residents," MAS added.

Binance has come under scrutiny from regulators across the world due to concerns over the use of crypto in money laundering and risks to consumers.

The MAS also listed Binance.com on its Investor Alert List, to warn local consumers that it has not been allowed to provide any payment services in Singapore.

Binance Asia Services (BAS), a separate entity that operates Binance.sg, has submitted a licence application to the central bank.

It is currently exempted from holding a licence for the provision of digital payment token services under transitional arrangements.