Singapore is tightening regulations in terms of which businesses and entities could work with digital assets in the country. The Monetary Authority of Singapore says that while they want the crypto space to develop in the country, they also recognize the associated dangers and threats. Before the Monetary Authority of Singapore decided on new licensing policies, there were more than 170 digital payment token services within the country. Of these 170, more than 100 did not get the necessary license from the authorities and can no longer engage in cryptocurrency business in the country. The most notable name in the list of rejected firms is Binance. However, Binance willingly withdrew their application, but sources reveal that it would have been rejected anyway. BitGo, Revolut Technology, and Klaytn are other big names failing to get the license.
After China banned all crypto-related activities earlier in 2021, Singapore became one of the hubs of cryptocurrency innovation. Many firms relocated to Singapore to benefit from the lenient policies of the jurisdiction. Many firms operated on a global scale from Singapore and were doing quite well until now.
The reasons behind this sudden regulatory change in Singapore are still under speculation. The authorities say that they are being more prudent about what entities they allow to operate in Singapore, given the risks and criminal threats associated. However, many firms would take the Binance route and start acquiring local firms that have the licenses to operate in the country.