Cryptocurrency exchange Huobi Global will stop serving Singapore-based customers from March 31, 2022 to comply with Singapore laws, according to a company announcement on Nov. 9.
Fast facts
- “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 announcement said.
- Huobi Global will gradually phase out access to services and close the accounts of all Singapore-based users on March 31, 2022. Singapore-based users have been advised to take immediate action to close out all active positions and withdraw all digital assets before the deadline.
- Huobi Global’s move to cease offering services to Singapore users comes as the crypto exchange, which was founded in 2013 in China, makes global expansion and compliance a priority as it winds down its cryptocurrency business for users in mainland China following the country’s latest crackdown on crypto. Earlier this week, Huobi Global announced that it had received approval from the Gibraltar Financial Services Commission to migrate spot trading services to its regulated entity in Gibraltar. Huobi Global had obtained a distributed ledger technology license in Gibraltar in 2018.
- In Singapore, cryptocurrency exchanges are required to be licensed under the city-state’s Payment Services Act (PS Act) for the provision of digital payment token services. As part of transitional arrangements under the PS Act, entities have been granted exemptions from holding a license, which allows them to provide services while their license applications are bring processed. The exemptions will cease when the entity’s license application is approved, rejected or withdrawn. MAS has to date granted licenses to FOMO Pay, a Singapore-based payments fintech, DBS Vickers, the brokerage arm of DBS Bank, and Independent Reserve, an Australian cryptocurrency exchange.
- In response to a request for comments, Huobi Singapore told Forkast.News in an emailed statement that Huobi Global’s move to exit Singapore had been planned to pave the way for Huobi Singapore — an entity under Huobi Technology Holdings Limited and registered in Singapore as FEU International Private Limited — to operate. FEU International currently holds an exemption from holding a license under the PS Act while its license application is under review. The Huobi Singapore platform is expected to launch by end-2021, subject to securing the necessary approvals. As Huobi Singapore is a separate entity from Huobi Global with separate onboarding process and KYC requirements, users will be required to open a new account with Huobi Singapore.
- “We would like to assure local users that Huobi Singapore is here to stay for good, and we are excited to launch a new platform to better serve the needs of the local market,” said Edward Chen, Huobi Singapore executive director and CEO, in a statement. “Huobi Singapore is committed to complying with both local and international regulations to provide a regulated and safe trading platform for retail and corporate users.”
This article has been updated to include Huobi Singapore’s comments.
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