Binance Asia, the arm of the largest cryptocurrency exchange platform globally by trading volumes, has just bought an 18% stake in the HGX exchange in Singapore. The purchase comes as Binance seeks to comply with the regulatory requirements in Singapore.
Binance had to close its operations in Singapore after the Monetary Authority of Singapore (MAS) announced that the exchange was not registered.
Binance buys stake in the HGX exchange
HGX is a private securities exchange situated in Southeast Asia. The exchange is backed by major financial players in the market, including Fundnel, PhillipCapital, PrimePartners, and it operates on the scalable Ziliqa blockchain.
HGX is one of the regulated entities in Singapore because it received a Recognized Market Operator license from the MAS earlier this year. The exchange holds shares in different private companies, seeking to expand into other assets such as art, real estate and wines.
In the press release, Richard Teng, the CEO of Binance Singapore, commented on this purchase, stating, “Crypto and traditional financial offerings continue to converge. Through this investment, we seek to work with HGX in enhancing offerings of products and services supported by blockchain technology. We aim to work collaboratively with HGX to enhance the blockchain ecosystem in Singapore.”
The announcement also added that Binance Asia Services was committed to continuing its partnerships with local firms and regulators to achieve sustainable growth of the global blockchain sector.
“In Singapore, we continue to work closely with key government agencies to support the growth of the blockchain ecosystem and development of requisite local talent needed,” Teng added.
Binance regulatory tussle
Binance has been facing a series of regulatory crises globally. One of the areas where the exchange faces a tough regulatory environment in Singapore. Singapore has one of the most progressive crypto regulatory frameworks, and some exchanges have found it hard to comply.
The exchange is currently looking for a physical location to establish its headquarters, and Singapore is one of the preferred locations. Huobi Global, another leading exchange platform, recently announced that it was moving its headquarters to Singapore after China banned crypto trading.
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