Binance’s Custody Arm Ceffu to Apply for Singapore License: Report
• Binance is applying for a Capital Markets Service license from the Monetary Authority of Singapore to provide custodial services in the country.
• The exchange’s custody unit, Ceffu, was rebranded in early February and will only deal with institutional investors and high net-worth individuals.
• Other companies such as Hex Trust and Coinbase have already received similar licenses in Singapore.
Binance Applies for Singapore License
Binance is making another attempt at getting a license in Singapore, this time as a custodian. The exchange’s custody unit, which it rebranded as Ceffu earlier this month, is applying for a Capital Markets Service license from the Monetary Authority of Singapore to provide custodial services in the country.
What is Ceffu?
Ceffu will only deal with institutional investors and high net-worth individuals; it will not offer services to retail clients. According to Binance, the name Ceffu is a reference to SAFU (Secure Asset Fund for Users), its insurance policy.
Similar Licenses Granted Elsewhere
Hong Kong-based custodian Hex Trust received a similar license in Singapore in September 2021, while Coinbase received a Digital Payments Token license from MAS in October 2021.
Binance Withdrew From Singapore
In December 2021, Binance withdrew from Singapore and canceled its application for a Digital Payments Token license. At the time, Binance said that they had already invested in a regulated exchange in Singapore and applying for a second license was „redundant“.
Conclusion
Ultimately, by applying for the Capital Markets Service License, Binance is attempting once more to receive approval from the Monetary Authority of Singapore – this time specifically as an approved custodian service provider rather than an exchanger.