- Binance plans to open fiat-to-crypto exchange in Singapore city-state.
- The crypto exchange has been on an expansion spree lately.
- Binance recently partnered with Chainalysis to enhance KYC and AML compliance.
Vertex Ventures, the venture capital arm of Singapore state fund Temasek Holdings, has made an investment in Binance Exchange. This is to prepare for the cryptocurrency exchange’s plans to expand operations into the city-state.
According to a joint statement by the two companies, the investment whose amount wasn’t disclosed is meant to assist Binance create and launch an exchange in Singapore for exchanging cryptocurrency to fiat by the end of the year. The investment will also see Binance launching similar exchanges and services all over Southeast Asia.
Binance CEO and founder Changpeng Zhao aka CZ, made an indication last month that Binance had plans to expand to Singapore. The managing partner of Vertex Ventures China Choon Chong Tay hailed CZ as one of the most respected entrepreneurs in the world of blockchain with high inspiration to build and promote the blockchain ecosystem. The managing partner of Vertex Ventures Southeast Asia and India Joo Hock Chua stated:
“We look forward to working with Changpeng Zhao and his team to drive innovation in the space while building a sustainable and compliant platform in Singapore.”
Talking about Binance’s plans to break into the virgin Southeast Asia market, the CFO at Binance, Wei Zhou stated that the crypto exchange looked forward to building up the blockchain ecosystem and working with all the stakeholders in Singapore to support the continued innovation in the local Fintech space.
Binance operations in Singapore are subjected to know-your-customer (KYC) and anti-money laundering (AML) compliance.
Binance announced the launch of a crypto-to-fiat exchange in the East African country of Uganda early this month. Binance CFO Wei said the company’s first fiat-to-crypto exchange in Uganda would help maintain sustainable economic stability in Africa and noted that the company planned to bring more innovations into the region.
Binance Tightening Strings to Mitigate Money Laundering
This month Binance also announced a new partnership with a cryptocurrency compliance provider Chainalysis in order to improve its ability to detect suspicious transactions. Chainalysis will enhance the KYC and AML compliance procedures by using real-time monitoring to track the provenance if every transaction happening in Binance’s platform.
The investment happens at a time when institutional players and regulators are divided about the validity of the blockchain technology and cryptocurrencies. The company has previously had run-ins with authorities in Japan, Hong Kong, and New York but it now plans to be able to swap cryptocurrencies into the Singapore dollar.