Binance Asia Acquired 18% Stake In HGX Securities Exchange

Binance Asia acquired 18% stake in the popular Singaporean securities exchange HGX despite being stuck in regulatory issues so let’s find out more in today’s binance news.

Binance Asia acquired 18% stake in the Singaporean securities exchange HGX. According to the official press release, BAS revealed an 18% post-money stake in the exchange. Richard Teng as the CEO of Binance Singapore stated that the platform will work hand in hand with the HGX exchange to foster the blockchain ecosystem in the region:

“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.

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.”

HGX was founded by prominent institutions like Phillip Capital brokerage, PrimePartners financial services group, and investment firm Fundnel. It is also powered by the blockchain platform Zilliqa, the Singaporean Monetary Authority which also granted HGX a recognized market operator license. Despite getting an 18% stake in the regional private securities exchange and more access to engage with the regulated market operator, Binance hasn’t cemented its position in Singapore yet. Reports suggested that the cryptocurrency company planned to withdraw its application from the region because Singapore is a hard jurisdiction. The mounting regulatory threat on different parts of the world led the exchange to look for other places to build its headquarters.

It’s important to note that Binance’s Singaporean entity is under an exemption from holding a license under the Payment Services Act for the provision of digital payment token services so Binance Asia licnese is still being processed by the MAS. The platform is only allowed to offer services until its application is reviewed and will cease after the response from the regulatory authority. If binance withdraws its license, the users in the region won’t be able to buy and trade crypto-asset via the platform legally.

The MAS added Binance.com to its Investors alert List which is a list of unregulated platforms that could have been perceived as being licensed or regulated by the authority. A binance official clarified that these two entities Binance.com and Binance Singapore are two separate platforms.