Yi He, the co-founder and Chief Marketing Officer at Binance, spoke to CryptoSlate in an exclusive interview on how the exchange decided to launch a fiat-enabled trading platform in Singapore, discussed the country’s regulatory frameworks around crypto, and the state of the cryptocurrency market.
Since its debut in mid-2017, Binance has experienced exponential growth in terms of daily trading volume and user base, evolving into the biggest cryptocurrency exchange in the global market. In the past nine months, Binance has released a blockchain startup accelerator called Binance Labs, Binance Charity, and a prototype for a decentralized exchange.
Earlier this month, Binance officially announced the launch a fiat cryptocurrency exchange in Singapore, equipped with seamless user experience and fiat (Singaporean dollar) integration. On Binance Singapore, users are able to deposit and withdraw the Singaporean dollar to trade cryptocurrencies with the national currency.
“Our mission at Binance is to contribute to the development of the blockchain industry by building the infrastructure for the ecosystem. Fiat currencies are a very important part of blockchain transactions. By launching a fiat exchange, we hope to provide users with a more complete user experience, and enable not only the exchange and transaction of fiat currency but also future investments in blockchain projects, media, education and other blockchain fields.”
Finding a Trusted Banking Partner in Singapore, Regulatory State
For fiat-enabled cryptocurrency exchanges, trusted banking partners are of utmost importance. Trading platforms need stable banking service providers to streamline the process of sending and receiving Singaporean dollar to and from exchanges.
With strict Know Your Customer (KYC) and Anti-Money Laundering (AML) systems in place that are in accordance with local regulations, Yi stated that the exchange will continue to cooperate with local financial regulators and leaders to grow the cryptocurrency exchange market of Singapore.
The exchange is confident in the financial system of Singapore, a country that has often been described as the global financial center with a rapidly growing economy, alongside Hong Kong and Switzerland.
“Singapore is a global financial center that has a developed economy and is politically stable. On top of that, Singapore has a high degree of insight and judgment into both finance and the Internet. We are looking forward to working with leaders in the space and will undergo KYC and AML procedures in strict accordance with local regulations, and we will cooperate in full accordance with the bank’s specifications.”
Already, with favorable cryptocurrency regulations, Singapore has started to attract large-scale cryptocurrency-related businesses and Internet conglomerates. Earlier this year, Kakao, the biggest Internet conglomerate in South Korea, revealed its plans to establish a blockchain venture in Singapore, which has become an important cryptocurrency market for Asia.
In May, the Monetary Authority of Singapore (MAS), Singapore’s central bank and financial regulatory authority, released a consultation paper which explicitly disclosed the agency’s intent to review the regulatory framework for crypto market operators to ensure that it is capable of meeting the demands of the exponentially growing market.
With the forward-thinking approach of the Singaporean government towards crypto, blockchain technology and fintech, He stated that the cryptocurrency sector of Singapore presents a rare and exciting opportunity for businesses.
“I believe Singapore will also play a significant role in the blockchain industry; many countries and regions with highly developed financial industries lack a direct relationship with their people, yet blockchain technology is decentralized at its core and has no geographical restrictions. For the forward-looking governments that value technology, this is a rare and exciting opportunity.”
Trends of the Crypto Market
A few years ago, Changpeng Zhao, the beloved CEO of Binance better known to the cryptocurrency community as CZ, sold his house to purchase Bitcoin, the most dominant cryptocurrency in the market.
But, the cryptocurrency market endured the fourth worst correction in its nine-year history, as Bitcoin recorded a 69 percent drop from its all-time high of $19,500.
Still, Yi emphasized that CZ was hardly shaken by his decision, even though the valuation of the property he sold doubled. Yi is still highly confident in the cryptocurrency industry, especially with the majority of employees at Binance receiving a portion of their salaries in Binance Coin (BNB).
“I am full of confidence in this industry – and typical for those who feel this way, I am devoting my all to this industry. Nearly all Binance employees are receiving part of their salaries in BNB, and many have heard how CZ sold his house to buy bitcoin years ago,” Yi said. “In fact, just two years after he purchased the bitcoin, that house had doubled in value, yet the price of bitcoin had crashed immensely. CZ never doubted and was hardly shaken, and my personal assets are basically all held in cryptocurrency to this day. This is faith.”
With the cryptocurrency market of Singapore, South Korea, Japan, and many European nations growing at a rate, and businesses like Binance expanding internationally, the long-term future of the crypto market remains optimistic.
Cover Photo by fabio on Unsplash