Singapore discourages use of Binance, to launch its CBDC soon?

Key facts

:

  • Singapore’s CBDC is developing with that of other countries such as Australia, Malaysia and South Africa.

  • The Binance Singapore platform, with new CEO as of days ago, was not listed as risky.

Singapore’s government agencies have made two decisions regarding the status of cryptocurrencies in the country. On the one hand, they are testing along with other nations a central bank digital currency (CBDC) for international transfers. On the other hand, it warns investors about the risks of trading with the cryptocurrency exchange Binance.

Through the Bank for International Settlements (BIS) Innovation Hub, the Singapore government has decided to move forward with testing the use of CBDCs for international transactions. In the so-called Dunbar Project

, the Monetary Authority of Singapore (MAS) is working together with the Reserve Bank of Australia, Bank Negara Malaysia and the South African Reserve Bank.

According to a BIS statement

, the main purpose is to “develop shared protocol platforms for cross-border operations using multiple CBDCs”. In this way, they detail, financial institutions will be able to transact with each other directly and without the need for intermediaries, which reduces the time and cost of operations.

To achieve this development in different blockchains and thus find a suitable operational design, government agencies will partner with various technology companies. The results are expected in early 2022, the BIS release details, although prototypes will be unveiled at the FinTech Festival in Singapore in November 2021.

Singapore tightens oversight on Binance

Earlier in July, CryptoNews had given an account

of

the limitations that various countries were applying to the leading cryptocurrency exchange, Binance.com. Singapore was one of them and, at the time, communicated that it would evaluate the company’s permissions to operate in the country.

The results of this analysis led to a resolution by the Monetary Authority of Singapore to include Binance.com among the risky investment platforms, as can be seen on its official website

. The entity explains that this list includes unregulated persons or companies that could be perceived by the public as being authorised by the MAS. Singapore discourages use of Binance, to launch its CBDC soon? <img src=”https://yellowrocketagency.com/wp-content/uploads/2021/09/autoridad-monetaria-singapur-advertencia-binance-1024×423..jpg” alt=” width=”708″ height=”293″ /> On the Monetary Authority of Singapore’s website, Binance is listed as a risky investment platform. Source: Monetary Authority of Singapore.

It should be noted that Binance Singapore (binance.sg) is not included in this listing. A week ago, the Singaporean franchise of the exchange hired Richard Teng, who worked for 13 years at MAS and was chief regulatory officer of the Singapore Stock Exchange (SFX), as CEO. As it has done in other countries

such as the UK, this move appears to be a nod from Binance to regulators that demonstrates its already stated intention to work together.

Meanwhile, the inclusion of Binance on this list by the MAS, which comes almost in parallel with the country’s progress in developing its CBDC, could be seen as a sign of the stance Singapore will take on cryptocurrencies. For both European regulators and Singapore’s watchdogs, the idea seems to be to limit the use and adoption of bitcoin (BTC) and other cryptocurrencies in order for CBDCs to gain traction in the digital economy.