The Monetary Authority of Singapore recently opened its doors to crypto by introducing the Payment Services Act. This policy is intended to regulate cryptocurrency payments and trading using regulations that currently govern traditional fiat payment services as a guideline. Any interested parties must apply for the appropriate licenses in Singapore, including a standard payment institution license, a money-changing license, and a major payment institution license.

According to Feb 17 Bloomberg report, one of the world’s largest crypto exchanges has done just that. Binance, with headquarters in Malta but also offices in cities across Asia, is attempting to expand its user base while staying regulatory compliant. Changpeng Zhao, Binance CEO, commented on the expediency of the process:

We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

Other Crypto Exchanges Except Binance Planning to Expand into Singapore

As cryptocurrency exchanges expand into new markets, local governments are still attempting to decide how to regulate them. The Payment Services Act is the first such legislation for Singapore, regulating crypto trading and digital payments.

Binance isn’t the only one to see the potential of Singapore’s new regulations. Crypto exchange operators Luno, based in London, and Liquid out of Tokyo have also expressed their intention of applying.

The new act requires crypto businesses operating in Singapore to be registered and licensed. They need to get one of these three licenses – money-changing license, standard payment institution, or major payment institution license. It’s not clear under which of these three categories Binance has applied for a license.

Binance has been operating a fiat-to-crypto exchange in Singapore since last April. The exchange currently supports eight coins, including bitcoin, ether, and XRP.

Binance’s Singapore unit is backed by Vertex Venture Holdings, the venture capital arm of Singapore government-owned Temasek Holdings.