Remote Operations Shield Binance from Singapore Regulatory Sweep

Binance's Singapore operations will remain largely intact despite new regulatory requirements forcing other major crypto exchanges to consider relocating staff, Bloomberg reported , citing unidentified people familiar with the matter.

While the Monetary Authority of Singapore's June 30 licensing deadline has prompted top-10 exchanges Bitget and Bybit to weigh overseas moves, Binance expects minimal disruption to its local workforce of hundreds of employees.

The exchange's Singapore-based staff primarily handle back-office functions including compliance, human resources, data analysis and technology rather than customer-facing services, according to people familiar with the operations who spoke to Bloomberg. This operational structure appears to shield workers from licensing requirements targeting firms offering services to offshore customers.

Regulatory Framework

Singapore's new rules require crypto firms incorporated locally and serving overseas customers to obtain licenses by June 30 or halt regulated activities. The MAS clarified that individual employees of foreign-incorporated companies providing services outside Singapore would not automatically trigger licensing requirements under the Financial Services and Markets Act 2022.

However, regulatory boundaries remain murky. "Place of business is a gray area," Chris Holland, partner at Singaporean consulting firm HM, told Bloomberg. "The definition of 'place of business' is broad under the FSMA. While the term will have a boundary, I would not encourage firms to engage people resident in Singapore and then rely exclusively on that definition to work remotely assuming that it's outside the remit of the new rules."

Operational Advantage

Binance's decentralized structure may provide additional regulatory insulation. The exchange has never established a formal global headquarters, with CEO Richard Teng describing the company as "remote-first" in January. More than 400 Binance employees identify as Singapore-based on LinkedIn, according to Bloomberg's analysis.

The company's remote work model, rather than maintaining permanent offices, further distances operations from regulatory scrutiny affecting firms with established local business presence.

Hub Under Pressure

Singapore has emerged as a key Asian crypto center, attracting major players like Coinbase and OKX through its licensing framework. However, the city-state faced reputational damage following high-profile failures during the 2022 crypto winter, including the collapse of Three Arrows Capital.

The June 30 regulatory deadline has sparked concerns about a potential crypto exodus from Singapore, though Binance's approach suggests companies with appropriate operational structures may weather the changes more successfully than initially anticipated.