Binance Asia Services, the Singaporean arm of major cryptocurrency exchange Binance, has acquired a stake in local private equity exchange Hg Exchange (HGX).
On Tuesday, the company officially announced the acquisition of an 18% stake in HGX, an exchange authorized and regulated by the Monetary Authority of Singapore.
Richard Teng, CEO of Binance in Singapore, said the new investment will help Binance and HGX expand their “blockchain-powered” products and services in Singapore.
Crypto offerings and traditional financial offerings continue to converge. Teng said: “We are committed to partnering with HGX to improve the blockchain ecosystem in Singapore.
HGX is a community-led private exchange founded by financial institutions such as asset manager PhillipCapital, local financial services group PrimePartners, and Fundnel, a technology platform for private equity investments in Southeast Asia. The exchange is allegedly using the Zilliqa blockchain.
After serving as CEO of the Financial Services Regulatory Authority of the Abu Dhabi Global Market, Teng began working as CEO of Binance Singapore in August 2021, several years after opening a branch in Singapore. According to the CEO, Binance continues to work closely with “key authorities” to support the growth of the blockchain ecosystem and is actively leveraging local talent.
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The new investment will come shortly after Binance faced some regulatory issues in Singapore. In late September, Binance banned Singaporean users from using its platform, citing compliance issues. Previously, Binance had a limited product offering in Singapore among regulators who argued that the company may have violated payment laws.
Huobi decided to leave Singapore as a global company to launch a dedicated domestic unit in November 2021.