Seychelles-based cryptocurrency exchange Huobi Global announced on November 9 that it would comply with Singapore regulation by ceasing its services to Singapore-based users.
Huobi Global to cease operation in Singapore
The announcement stated, “To comply with the laws of Singapore, we will have to include Singapore as a restricted jurisdiction. Regrettably, this means Huobi Global can no longer offer services to Singapore-based users.”
The exchange will gradually phase out access to its services and close the accounts of all its Singapore-based customers on March 31, 2022. As a result, consumers in the region have been asked to close all active positions as soon as possible and withdraw their crypto assets before the deadline.
The company, which was formed in China, decided to prioritize worldwide expansion and regulatory compliance after restricting access to parts of its services for Chinese customers following China’s crackdown on crypto operations.
Huobi Global, meantime, announced earlier this week that it had acquired approval from the Gibraltar Financial Services Commission to relocate its spot trading services to its Gibraltar-based regulated firm. Since 2018, the company has held a distributed ledger technology license in Gibraltar.
Current Singapore regulations require cryptocurrency exchanges to get a license under the country’s Payment state’s Services Act (PS Act) before offering crypto token services.
Companies need exemption before obtaining a license as per PS Act
On the other hand, institutions have exemptions from the requirement to obtain a license as part of the PS Act’s transitional provisions. This allows them to continue to provide services as their licensing applications get processed. When the entity’s licensing application is approved, withdrawn, or rejected, these exemptions expire.
So far Monetary Authority of Singapore (MAS) has granted licenses to a number of Singapore-based payment providers, including DBS Vickers, FOMO Pay, and Independent Reserve, an Australian crypto exchange.
Huobi was neither on the MAS’s list of companies given an exemption from holding a license under the Payment Services Act nor on the list of non-exempted businesses.