Binance has no plan to close Singapore users' accounts after Oct 26 deadline

Sep 28, 2021

SINGAPORE - Cryptocurrency exchange Binance will not be closing the accounts of Singapore users even though it has restricted access to trading cryptocurrencies on its platform, in line with a regulatory order by the Monetary Authority of Singapore (MAS).

On Monday (Sept 27), Binance said users in the Republic would no longer be allowed to buy and trade cryptocurrencies on its main platform - binance.com - and advised users to cease all related trades, withdraw fiat assets and redeem tokens by noon on Oct 26, to avoid potential trading disputes.

Its spokesman told The Straits Times: "Currently, Binance.com will restrict access by Singapore-based users to the products listed in our notice." She said, however, that there are no plans to close user accounts post-Oct 26.

The spokesman did not respond when asked what other activities can be carried out by Singapore users by leaving their accounts opened.

Responding to Binance's move, user Derrick Ng said: "By stopping all trading activities, the account is of no use to me now."

The latest move by MAS adds to other changes that have made trading on Binance harder for Singapore users.

Some banks have cautioned their customers of the high volatility of dealing with cryptocurrencies.

Earlier this year, Citibank took the step to block cryptocurrency-related credit and debit card transactions in Singapore.

"Hence, there are no Binance transactions posted on Citibank credit cards here," a Citibank Singapore spokesman told ST.

Meanwhile, the local banks said they have measures in place to block transactions that are detected to be at risk.

"We caution customers to be vigilant when conducting online transactions and ensure that they transact only with credible, licensed merchants and platforms. In addition, we have in place robust measures to safeguard the interests of our customers and will take necessary actions, including blocking transactions that could be at risk," said a DBS spokesman.

Mr Vincent Tan, head of Card Business at OCBC Bank said the blocking of credit and debit card transactions from any merchants is done on a case-by-case basis.

When asked about the number of blocked transactions and funds withdrawals, the Binance spokesman declined to reveal the statistics, saying that the information is commercially sensitive and that the firm does not share this publicly.

Earlier this month, MAS placed Binance.com on its Investor Alert List, to warn consumers in Singapore that Binance is not regulated or licensed in Singapore to provide any payment services.

MAS had reviewed Binance's operations and is of the the view that the operator may be in breach of the Payment Services Act (PS Act). It then ordered Binance to cease providing payment services that are regulated under the PS Act to Singapore residents and also to stop soliciting such business from Singapore residents.

It said Binance, which operates a global cryptocurrency exchange platform, did not apply for a licence under the PS Act, but it is reviewing the licence application of Binance's local arm, Binance Asia Services (BAS).

BAS is expected to immediately begin an orderly suspension of its facilitation of transfers of digital payment token assets between BAS and Binance.

Following MAS' order, Binance stopped allowing payments to be made in Singapore dollars and removed its P2P (peer-to-peer) trading options for Singapore users on Sept 10. Industry observers said the two activities have likely breached Singapore regulations and P2P trading users are at a higher risk of being scammed.