CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Binance Singapore withdraws licence application

By Debabrata Das

07:51, 13 December 2021

Binance logo on a smartphone
Users may continue to buy and sell their existing assets until 12 January – Photo: Shutterstock

Binance Asia Services, the Singapore-based unit of the world’s largest cryptocurrency trading platform Binance, will withdraw its application for a licence in the city-state and wind down its operations there by 13 February.

“The decision has not been made lightly, and we apologize in advance for any inconvenience this may cause,” Binance Asia said in a notice to users on Monday.

“I am grateful to the Monetary Authority of Singapore (MAS) for its ongoing assistance to Binance Asia Services and we look forward to future opportunities to work together,” Richard Teng, CEO of Binance’s Singapore entity added in an email statement.

No new user registrations

According to the notice, Binance.sg will stop accepting new user registrations with immediate effect. Binance.sg will suspend accounts that have registered but have not cleared know your customer screening.

Further, users will not be able to deposit crypto or fiat on Binance.sg from Monday, though they may continue to buy and sell their existing assets until 12 January, while making plans to withdraw their holdings.

In the next phase of winding down that will begin from 13 January, buying and selling of crypto from existing assets will be discontinued and users will only be able to withdraw or move their crypto assets to third-party platforms or crypto wallets or in Singapore dollar.

US100

20,800.30 Price
+0.440% 1D Chg, %
Long position overnight fee -0.0241%
Short position overnight fee 0.0019%
Overnight fee time 22:00 (UTC)
Spread 7.0

Gold

2,716.45 Price
+1.740% 1D Chg, %
Long position overnight fee -0.0174%
Short position overnight fee 0.0092%
Overnight fee time 22:00 (UTC)
Spread 0.60

BTC/USD

98,959.20 Price
-0.530% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

ETH/USD

3,422.06 Price
+2.870% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

Crypto trading to stop by January

All accounts will be closed by 13 February. Those who are unable to close their positions and withdraw crypto assets by 13 February will face a suspension of the Binance.sg account.

The crypto assets of such accounts will be held in an escrow account and fiat assets will be transferred to the person’s StraitsX Personal Account.

To recover funds from suspended accounts, holders will need to contact the customer service of Binance.sg, though an additional maintenance fee of 5% per month of the remaining crypto asset balance and a one-time administrative fee of 20% on the remaining crypto asset balance to be transferred will be levied.

All accounts suspended after February

“We recommend that you take action as soon as possible before the deadline for account closure (13 February 2022). Please note that BAS will not be held responsible for any losses that result from your failure to withdraw your assets and close your account by 13 February 2022,” Binance added in a statement.

The exchange was one of the 170 firms that had applied to MAS for a permit to provide cryptocurrency services earlier this year. Binance.com’s operations in Singapore were also restricted in September after MAS asked it to stop providing payment services.

Read more: Binance restricts Singapore services after central bank censure

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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