Changpeng Zhao, CEO of the world’s largest cryptocurrency exchange by trading volume Binance, said that Singapore’s approach to digital assets has become more “conservative,” particularly after the spectacular collapse of the now-defunct FTX exchange.
The top crypto influencer spoke virtually at a conference in Singapore on Thursday, commenting on the city-state’s crypto-friendly yet cautious move toward the asset class.
CZ, as he is widely known in the crypto space, pointed out that Hong Kong’s crypto regulations, which were implemented mid-year, only permit a limited number of tokens for retail investors to trade.
Hong Kong’s first crypto rules came into effect in June, noting that retail traders are limited to buying tokens with large market capitalizations, such as Bitcoin (BTC) and Ether (ETH).
Per a Bloomberg report, CZ highlighted how several traditional financial institutions have refrained from offering cash to crypto services due to a shift towards tighter crypto regulations.
“But at the same we are seeing new ones coming up.”
In 2021, Binance announced that it had shut down its trading platform for Singaporeans after Singapore’s central bank – the Monetary Authority of Singapore (MAS) – said it should stop offering payment services.
The embattled exchange later announced in March this year that it is seeking to secure a license to offer cryptocurrency services in Singapore once more, but this time, focusing on institutional clients rather than retail investors.
Binance in the Battleground
The beleaguered crypto exchange has been facing increased pressure from the United States Securities and Exchange Commission(SEC) after the authority filed a lawsuit against Binance and CZ, alleging multiple securities violations related to its native BNB token and the BUSD stablecoin. The exchange and CZ are facing a total of 13 charges.
Binance.US, the exchange’s US arm, challenged the SEC’s motions or further probe. The subsidiary announced this week that it is cutting one-third of its workforce, or 100 staff, citing the exchange’s challenges with the SEC.
Binance and its US arm is also witnessing a mass exodus of top executives in the recent times, including Binance.US CEO Brian Shroder.