Binance to keep remote workers in Singapore
Singapore: The world's largest digital assets exchange Binance plans to keep hundreds of remote workers in Singapore, despite a crackdown on unlicensed crypto outfits in the city-state.
The Monetary Authority of Singapore (MAS) recently announced a hard deadline of June 30 for crypto firms incorporated in Singapore and offering services offshore to cease activities, prompting top-10 exchange operators Bitget and Bybit to weigh shifting employees overseas.
The new rules are expected to have a negligible impact on Binance's operations in Singapore, according to sources.
Hundreds of Singapore-based employees working remotely for the exchange will not need to relocate, the sources said.
More than 400 Binance workers label themselves as based in Singapore on LinkedIn, according to a Bloomberg News analysis.
Binance had no comment on its operations in the city-state, and did not specify whether it has an office in there when asked by Bloomberg.
Crypto exchanges have long posed challenges for would-be regulators by leaving their base of operations ambiguous.
Binance has never named a global headquarters.
Its chief executive Richard Teng – a former director at MAS – said in 2024 that the company had held talks with a number of jurisdictions on the matter, but in January he described Binance employees as 'remote-first'.
In a June 6 clarification to its initial announcement, MAS said digital asset firms offering services 'solely to customers outside of Singapore' will need to be licensed from June 30 or 'cease their regulated activities'.
Binance is not licensed in Singapore and has been on an investor alert list there since 2021, meaning it cannot solicit customers from the city-state.
Binance employees here are seen as shielded from the recent MAS notice, however, because they mainly focus on back-office activities including compliance, human resources, data analysis and technology, sources said.
Working remotely, rather than in a permanent office, also helps to insulate them, the sources added.
Individuals or partnerships that operate from a place of business in Singapore or incorporated in the city-state and offering digital token services outside the country will fall under the new rules, MAS said in its May 30 statement.
But work done by an individual as part of their employment with a foreign-incorporated company that provides such services outside Singapore 'would not, in itself, attract a licensing requirement' under the Financial Services and Markets Act (FMSA) 2022, MAS said.
'Place of business is a grey area,' said Chris Holland, partner at Singapore consulting firm HM.
'The definition of 'place of business' is broad under the FSMA. While the term will have a boundary, I would not encourage firms to engage people resident in Singapore and then rely exclusively on that definition to work remotely assuming that it's outside the remit of the new rules.'
Singapore is one of Asia's foremost crypto hubs, with a licensing regime that global players such as Coinbase Global Inc and OKX have have used to set up regional bases.
But the city-state suffered a string of bruising blow-ups during the last industry downturn in 2022.
Among those was Three Arrows Capital, a crypto hedge fund that imploded after a series of bad bets.
Singapore's status as a fulcrum for the industry is now being called into question, after the June 30 deadline sparked concerns of a crypto exodus.
'There's lots of uncertainty on Singapore's stance on crypto,' said Raagulan Pathy, co-founder of Kast, a stablecoin startup.
Cayman Islands-based Kast has hired 100 people in the past 12 months and had planned to shift internal operations employees, trading teams and other executives to Singapore while hiring 30 to 50 people here.
Pathy aimed to set up a global office in Dubai instead.
He has no plans to move personally but has to 'make hard choices about where to locate offices for Kast'. — Bloomberg
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
41 minutes ago
- The Sun
US trade deficit widens in May as Trump tariffs fuel uncertainty
WASHINGTON: The US trade deficit widened more than expected in May, government data showed Thursday, with both imports and exports declining as US President Donald Trump's tariffs sent shock waves through the economy and snagged supply chains. The world's biggest economy logged an overall trade gap of $71.5 billion, in the month after Trump imposed a 10 percent duty on most trading partners before pausing steeper rates for dozens of these economies. This was an expansion from the $60.3 billion deficit in April, according to Commerce Department data. The figures, however, came as both imports and exports shrank in May. US imports were down 0.1 percent to $350.5 billion, as incoming shipments of goods ticked down. Imports of consumer goods dropped by $4.0 billion, with those of apparel and toys both sliding, although imports of autos and parts climbed. US exports, meanwhile, dropped by 4.0 percent to $279.0 billion, with declines largely seen in industrial supplies and materials, the report showed. While Trump pulled back on some of his harshest tariff measures in April, he doubled down on levies impacting goods from China. Tit-for-tat tariffs between Washington and Beijing surged to triple-digits around the time, a level described as a trade embargo as businesses halted shipments to wait for both governments to ease tensions. This could have dented imports of certain consumer goods before United States and Chinese officials eventually came to a pact in mid-May to temporarily lower these tariffs. – AFP
The Sun
41 minutes ago
- The Sun
France fines Shein 40 mn euros over ‘deceptive' sales practices
PARIS: France announced Thursday a record 40 million-euro fine against e-commerce giant Shein over 'deceptive commercial practices' after a competition inquiry, saying it misled customers on price deals and on its environmental impact. The French competition and anti-fraud office said the investigation found Shein used 'deceptive commercial practices towards consumers regarding... price reductions', with the fine handed down with the blessing of the Paris prosecutor's office. The DGCCRF competition office said the nearly year-long probe found that the firm raised certain prices before lowering them. It added that the China-founded retailer had accepted the fine. 'These practices of greatly discounted prices and permanent promotions give consumers the impression they're getting a great deal,' said the DGCCRF. If found that 11 percent of advertised discounts it checked 'were actually price increases'. In 57 percent of cases Shein's advertised promotions actually offered 'no price reduction' and in 19 percent of cases the price drop 'less significant than announced'. Launched in France in 2015, Shein has seen phenomenal growth in recent years and took its share in the domestic clothing and footwear last year to three percent from two in 2021 -- a significant slice in what is a notably fragmented market. The company, which has become a figurehead for the downside of 'ultrafast fashion,' is decried in some quarters for causing environmental pollution as well as indulging in unfair competition and allowing poor working conditions. In a statement to AFP, Shein said it had put into action 'without delay' necessary corrective action inside two months on learning of the DGCCRF probe against in March of last year. It added it took its legal and regulatory obligations in France 'very seriously'and was committed to transparency. – AFP
The Sun
2 hours ago
- The Sun
Stellantis recalls 636,000 units over diesel engine
CHARTRES-DE-BRETAGNE: US-European automaker Stellantis group has begun a recall of hundreds of thousands of Peugeot, Citroen, Fiat, Opel and DS cars equipped with the 1.5 BlueHDi diesel engine, a group spokesperson told AFP Thursday. Produced between 2017 and 2023, the models concerned have experienced problems with the timing chain that synchronises the opening and closing of the intake and exhaust valves. Overall, 636,000 vehicles will be gradually recalled in France and still more in European countries affected. The small 1.5 BlueHDI engine (called 'DV5') powers dozens of popular models, including the Citroen C3, C4, Opel Corsa, Mokka, and Peugeot 208, 2008, and 308. Owners of those vehicles have expressed concern at issues including engine knocking or chirping sounds which could lead to broken valves or actual engine failure. The manufacturer will be contacting affected owners. When the vehicle arrives at the dealership an app can analyse the extent of the problem and see if parts should be replaced if premature wear is diagnosed. Stellantis has extended the warranty on units affected to ten years or 240,000 kilometres (140,000 miles), the group said. Customers who have had timing chain problems will be able to claim compensation for related expenses, Stellantis said, 'provided that the vehicle's maintenance and diagnostics follow the brand's recommended guidelines.' The issue is the latest in a number of recent reliability issues to hit Stellantis. The group's new CEO, Antonio Filosa, has made vehicle quality a top priority. – AFP
