Binance acquires stake in HGX as it seeks to clear regulatory hurdles

Karthik Subramanian

Binance, the embattled crypto exchange which continues to do good business around the world, has announced that it has acquired 18% in the Singapore-based private securities exchange, Hg Exchange (HGX).

binance

Though the details of the deal have not yet been made public, it can be safely assumed that one of the main purposes of acquiring a stake in the exchange is the fact that HGX had recently acquired a market operation license from the Monetary Authority of Singapore.

Binance Share of Problems

Binance has been having its share of its problems in Singapore and was recently forced to shut down its operations in the region as the MAS had come down hard on the exchange as it did not have any regulatory license to carry on with its operations in the country. This had forced the exchange to contemplate leaving the region completely but it seems to have had a change of heart.

“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,” said Richard Teng, chief executive, Binance Singapore.

Importance of Singapore

Singapore and the presence there, for a fintech company like Binance, is key as it is one of the financial capitals of Asia whose crypto regulations are likely to become the most relaxed in the Asian region in due course of time. This was probably weighing on the leadership team of Binance which is why they chose to stay back in Singapore and look for ways to restart their operations pretty quickly and this stake acquisition is likely to pave the way for that shortly. It is also interesting to note that Teng was the Chairman at HGX before he took over as the Head of Binance Singapore and it would have certainly helped to smoothen the negotiations between the two exchanges.

Now with this new foothold in the region, it would be interesting to see how Binance would be approaching the operations and the licensing issues that it has been faced with. Its priority is likely to be to start the operations in the country as soon as it can so that it would help it to regain confidence from the users not only in Singapore but in other parts of Asia as well as it looks to assure the investors and traders that it is here to stay for the long run and these regulatory issues are just a small blip in its path.

 

Read this next

Retail FX

Italian watchdog red flags Olympus Brokers, UnicoFX and Allfina Group

Italy’s Commissione Nazionale per le Società e la Borsa (CONSOB) has shut down new websites in an ongoing clampdown against firms it accuses of illegally promoting investment products in the country.

Retail FX

XTB revenues hits zł1.45 billion in 2022, Q4 earnings disappoint

Poland-based Forex and CFDs broker, XTB has reported its final results for Q4 of 2022 and the full fiscal year ending on December 31, 2022, showing one of its most successful corporate years.

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

<