Leading cryptocurrency exchange, Binance has recently acquired an 18% stake in the Singapore-regulated private securities exchange, Hg Exchange (HGX).
According to an official announcement today, the deal will be conducted via the crypto exchange’s Singapore division, Binance Asia Services.
Speaking on the latest development, the CEO of Binance Singapore, Richard Teng, who had earlier served as the chairman at HGX, said,
“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.
HGX offers its clients equity investment in private companies and was recently granted a Recognised Market Operator license by the Monetary Authority of Singapore (MAS) earlier this year.
The company noted that it is actively working to list several alternative assets on its platform, including art, real estate, and more, in addition to shares in private companies that it currently offers.
Binance’s Failed Attempts to Obtain License in Singapore
The new move comes amid several failed attempts by Binance to secure a license from Singapore’s financial regulator, the MAS.
The crypto exchange intends to work with HGX to create several blockchain-based products and services and help with its regulatory hurdles.
“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.
Per the announcement, the deal is still subject to regulatory requirements.
Earlier in September, MAS had added Binance to its investor alert list, alleging that the exchange is providing unauthorized financial services in the country.
Subsequently, Binance restricted Singapore users from accessing certain features on its platform, including deposits, spot trading, and more.
The exchange has since been waiting on the sidelines for the regulator to grant it a license to operate. However, the wait is becoming more frustrating for Binance as other smaller exchanges receive regulatory approval.
In fact, recent reports citing people familiar with the matter have revealed that Binance is allegedly considering withdrawing its application and turning to other welcoming jurisdictions.
