Binance, the world's largest cryptocurrency platforms by trading volume, will start a crypto fiat exchange testing in Singapore. This was revealed by the Binance Co-founder and CEO ChangPeng Zhao, during a blockchain conference in Singapore. He later confirmed the plans through an official tweet post
. It can therefore be assumed that before the end of the year, Binance would offer support for the Singapore Dollar (SGD) including alternatives like SGD/BTC and SGD/ETH pairs. For now, the SGD pairs will only be available in closed Beta, since the beta testing will be through invitation only. More information on the digital currencies which will be sued for the trading has not yet been revealed.
Binance Could Get An Ideal Market In Singapore
Since the establishment of the exchange in 2017, Binance has been progressively increasing daily and now has the largest trading volume worldwide. The platform was initially founded and based in China although the servers and officers have later moved to Japan then Malta. Binance, which boasts of more than 10 million users, is expected to end the year with an estimated $1billion profit. The crypto exchange has also expressed interest in moving to unfamiliar cryptocurrency places like Bermuda and Africa, which are characterized by underdeveloped financial systems. The firm believes that the blockchain technology would be embraced relatively since they have a highly decentralized economy.
The news comes only a few days after Binance teamed up with Malta Stock Exchange (MSX)
to allow the security token trading. A memorandum of understanding, which was signed by the Binance chief financial officer Wei Zho and MSX chairman Joe Portelli, would facilitate more innovations between the two companies. The trading platform has also been working closely with Malta's authorities for some time: in March, Binance announced its plans to build an office Malta as well as a fiat to cryptocurrency exchange.
The company has had a red letter year despite the prevailing market conditions. Following the ban of cryptocurrency transactions in India, Binance has embraced on various global expansions drives in South Korea, Jersey, Liechtenstein, and Uganda. Also, it recently launched $1bilion fund to support multiple blockchain projects. Ella Zhang, the Binance labs head said that the company would select 20 qualified partners to team up with to manage the funds.
It's not surprising to hear that the Hong Kong-based cryptocurrency platform has chosen to launch on Singapore. The country has a tech-friendly atmosphere, relatively low taxes and above all, a population of more than 5 million people. The country is also named as one of the ‘Four Asian Tigers’, due to its ever booming economic growth. Additionally, the nation has an already established global reputation, with TRON, VeChain, and ICO also based in Singapore.
Despite all that, Singapore government has not yet legalized cryptocurrency as a legal tender in the country. A report by Colin Ng & partners argue that Singapore does not recognize cryptocurrency exchanges as monetary exchange although the authorities allow the transactions provided they comply
with CFT and AML requirements. Nonetheless, the blockchain technology is accessible in the state just because of the technological advancements and high country connections in Asia.
In May 2018, Singapore's monetary authority closed an Initial Coin Offering firm then warned eight more firms that they would be blacklisted if they continued to sell financial derivatives without permission. However, a spokesman of that time stated that no specific safeguards were put in place. Some of the famous cryptocurrency companies in Singapore include Bitbox, an exchange firm opened by the company behind Japans Whatsapp version, Line Corporation of Tokyo. Bitbox trades approximately $50 million cryptocurrencies within 24 hours, according to its site, and allows trading of around 30 digital tokens.