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The image of blockchain-powered cryptocurrencies has been so entrenched in our consciousness that we tend to regard blockchain as synonymous with crypto. But if we dissociate blockchain from crypto, we can view blockchain as the groundbreaking technology that it is: a LEDGER that contains immutable data and removes the need for third parties during the process of recording transactions - fast and furious style - between any two parties. This distinction is perhaps best exemplified by the example of Binance SG
Before I continue, I should clarify that is the parent company of BINANCE SG (aka Binance Asia Services). Actually, in September 2021, Binance fell out of flavour with the Monetary Authority of Singapore (MAS). Specifically, the MAS prohibited Binance from providing payment services and soliciting business from Singapore residents. I wrote about this breaking news on Publish0x. At the time, Singaporeans who invested in Binance SG were reassured that it was business as usual at the Singapore arm. After all, Binance SG was temporarily exempted from holding a license under the Payment Services Act.
Beyond this pretend placidness, there was a whirlpool that was spinning and gathering force.
The bombshell dropped today (December 13, 2021).
Binance Asia Services withdrew its application for a license from the MAS, citing that it wanted to refocus its operations in Singapore to help catch the blockchain wave and develop a blockchain innovation hub and conquer the global blockchain ecosystem.
I guess it was strategic of Binance SG to pivot its direction and concentrate its resources optimally, or whatever we wish to call it. But the thing was, with its withdrawal, Singaporeans who had assets invested with Binance SG were given until Feb 13, 2022 to close their trading positions and WITHDRAW all their fiat and digital assets. They were caught between a rock and a hard place - either make the agonising decision of an alternative crypto exchange to transfer their assets to or liquidate their holdings with Binance SG.
Barely a week earlier, news of Binance acquiring 18% of Singapore-regulated private securities exchange - Hg Exchange - broke. Binance SG openly admitted that this acquisition might have been part of the reason why Binance stopped striving for a license with MAS as it now viewed Hg Exchange's presence as something that
"has made our own licence application somewhat redundant"
I'm not a Binance SG user but I feel let down nonetheless. It's like Binance chasing the wind and abandoning its supporters at the drop of a hat. Of course, Binance is a commercial firm and I shouldn't get myself too attached to old-fashioned concepts like loyalty and sentimentality but still...I doubt people who have money invested in Binance will ever forget this sense of betrayal, this helplessness as they are suddenly thrown into the dark waters, having to find a second home for their crypto and probably incurring some losses in the process.
So we learn from this incident. Blockchain is not the same as crypto. And while we may swear by our favourite brands, we should not just stick to our preferred brands because like investing, diversification should be the way we employ to manage risk!
