Singapore tells Binance to halt service in latest crypto hit

Binance Holdings Ltd. must stop offering services regulated in Singapore after a potential breach of local payment rules, adding to a mounting list of jurisdictions scrutinizing the world's largest cryptocurrency exchange.

Binance may be in breach of the Payments Services Act for providing payment services to, and soliciting business from Singapore residents without an appropriate license, the Monetary Authority of Singapore said, in response to questions from Bloomberg.

As Binance didn't apply for a license under local law, the MAS has added Binance.com to the investor alert list, which warns consumers that Binance isn't regulated or licensed to provide any payment services locally. The Singapore regulator's warning marks the latest blow for Binance, which has grown quickly since its 2017 debut and doesn't have a global headquarters.

While Binance has also drawn scrutiny from regulators in the U.S., the U.K., Thailand, Malaysia and Japan, many crypto bulls say tougher frameworks are a sign of market maturity offering more protection for investors that could lure more money to digital assets.

"MAS is likely to take a holistic view on the application and consider the fact that Binance (global) has been put on the investor alert list," said Nizam Ismail, founder of Ethikom Consultancy, a Singaporebased consultant, which advises firms on compliance and regulation. "Binance (global) would have to show that it has remediated any shortcomings and that it will not, going forward, solicit trades from Singapore resident customers."

Binance Holdings, which operates globally, has local affiliates in some countries like the U.S. and U.K. and in Singapore.