Binance, one of the world’s largest cryptocurrency exchanges, is reportedly planning to keep hundreds of remote workers in Singapore despite the city-state tightening regulations on digital asset firms operating without a license. The Monetary Authority of Singapore (MAS) has set a deadline of June 30 for crypto firms incorporated in Singapore but targeting overseas markets to either obtain a license or cease operations.
While other exchanges like Bitget and Bybit are considering relocating staff abroad in response to the new regulations, Binance seems set on retaining its Singapore-based workforce. According to a report by Bloomberg, over 400 Binance employees in Singapore primarily focus on internal functions such as compliance, human resources, data analytics, and technology. These roles are non-customer facing, which means they are not directly affected by the regulatory crackdown on crypto firms offering services without a license.
Despite being listed on MAS’ Investor Alert List since 2021, Binance has not completely pulled out of Singapore. The company operates in a legal grey area, unable to serve local customers but still maintaining a presence in the country. The MAS rule targeting local entities offering token services abroad does not directly apply to Binance due to its unique structure as a “remote-first” company with no formal headquarters.
The MAS has clarified that remote employees based in Singapore working for foreign firms that serve customers outside the country are exempt from licensing requirements under the Financial Services and Markets Act 2022. This exemption allows Binance to keep its remote staff in Singapore without facing regulatory scrutiny as long as they are not serving local customers.
The decision to retain its Singapore workforce showcases the challenge regulators face in overseeing the borderless nature of global crypto operations. Despite the regulatory crackdown, Binance’s remote staff in Singapore will continue to play a crucial role in the exchange’s back-office functions, highlighting the resilience and adaptability of the cryptocurrency industry in navigating regulatory challenges.
In conclusion, Binance’s commitment to keeping its remote workers in Singapore amidst the crypto licensing crackdown demonstrates the exchange’s strategic approach to compliance and regulatory challenges. The company’s internal functions in Singapore remain unaffected by the new regulations, allowing it to maintain operational continuity in one of Asia’s leading digital asset hubs. The evolving regulatory landscape in Singapore reflects the complex dynamics of the crypto industry, where innovation and compliance must coexist to ensure a sustainable and secure ecosystem for all stakeholders.