According to reports, the world’s largest cryptocurrency exchange by daily trading volume, Binance has officially set up a platform for buying and selling cryptocurrencies in Singaporean Dollar (SGD). Thus expanding its territories across Asian countries including Hong Kong and Taiwan.
Binance Singapore had been in the pipeline since September 2017. In fact the platform’s CEO Changpeng Zhao, famously known as CZ, revealed that closed beta testing for its Singapore chapter was in progress during an event at Consensus Singapore.
This year in April, the project materialized in the form of a soft launch of Binance Singapore, that enabled users in the country to purchase and sell crypto assets with the Singaporean dollar (SGD) via Fast and Secure Transfers electronic funds transfer system or FAST.
The beta version of Binance Singapore bore slight differences from the original one, in the sense that it offers limited choice of crypto assets on sale as opposed to what the platform’s users are accustomed to. Another rather stark difference that goes against the very basis of Binance’s rise to fame is that the beta version of the Singaporean venture allowed customers to purchase bitcoin only and that too at fixed prices.
However the officially launched version of the platform allows users to buy and sell bitcoin (BTC), Ethereum (ETH) and Binance Coin (BNB) against Singapore Dollar (SGD). The platform further plans on adding more variety of cryptocurrencies in the future.
Binance Singapore has been launched in partnership with Vertex Ventures, which is a global tech-focused venture capital network with divisions in Silicon Valley, Israel, China, and Southeast Asia & India. For the Singapore project particularly, Ventures China and Vertex Ventures Southeast Asia & India have teamed up.
Additionally, the Binance venture has another partnership for its Singapore venture; Xfers that is a crypto based startup in the Southeast Asia. Ironically enough it has previously offered its services to help Coinbase, Binance’s U.S-based rival, to set up services in Singapore. However, according to reports Coinbase stepped out of both, the partnership and the country last year because of the startups alleged inability to the exchange’s growth.
Xfers’ history with Coinbase puts a question mark on Binance’s choice of partner, however the exchange cleared it out that Xfers is now capable of handling large volumes required for the success of Binance Singapore. Time will tell how Binance gets on with the startup, or will it follow the same path as that of Coinbase.
Since Coinbase exited Singapore, it provided the ideal market for Binance to enter into the new market. Although the existing demand plays a key role while setting up into a new region, CZ emphasized that alone was not the reason to move into Singapore. Zhao gives more weightage to a progressive regulatory environment in the decision-making process of the company when entering into a new market.
The government of Singapore has been focusing on crypto ecosystem during the past couple of months. Reportedly they are seriously considering on imposing changes to the existing crypto related policies of the country in order to facilitate better growth of the blockhain and crypto sector.
Only earlier this week, the country made news as it unveiled its plan to lift the double taxation on various crypto assets. The Inland Revenue Authority of Singapore (IRAS) released an e-Tax draft on “digital tokens”, according to which they intend on removing double taxation on major crypto assets including on Bitcoin, Ethereum, and Litecoin.
Because of the country’s welcoming approach towards the newest technologies and a favorable regulatory framework, several blockchain and crypto related companies have entered into the Singapore market. CZ, during an interview, shared:
We hope to set the stage for other organizations in Singapore, and beyond, where the region is pioneering in blockchain-related legislation while upholding rigorous standards and policies.
The cryptocurrency exchange has managed to expand into various markets and the Singapore venture marks Binance’s third fiat centric effort, following its exchanges in Uganda and Jersey. From the details up till now it seems that Binance is doing pretty well in its newest market, as the user base for the beta version of Binance Singapore grew by around 20 percent per week with a substantial increase in daily trading volume.