The test will begin on Tuesday, the Binance chief executive officer Changpeng Zhao explained.
One of the largest cryptocurrency exchanges by market volume Binance will start closed beta operation of crypto-to-fiat trading in Singapore, the company chief executive officer Changpeng Zhao tweeted on Saturday.
The test service will be launched on Tuesday, Zhao explained while speaking at a blockchain event, organized by cryptocurrency trading company Cumberland in the Asian country.
“I just slipped that we will begin #Binance Singapore fiat exchange live money closed beta testing on Sept 18th […] Invitation only first. Exciting,” Zhao said.
I just slipped that we will begin #Binance Singapore fiat exchange live money closed beta testing on Sept 18th, in 3 days. Invitation only first. Exciting! https://t.co/Hzo6jLLkfS
Zhao announcement is not the first Binance fiat-to-crypto initiative. Last month, the company joined forces with the Liechtenstein blockchain company LCX with the aim to develop Euro and Swiss franc exchange, with several coins, including Bitcoin (BTC) and Ethereum (ETH). Zhao’s company should provide and maintain the trading platform, dubbed Binance LCX, while LCX should manage the customer support, legal requirements, due diligence, KYC and AML procedures. Binance LCX is still under construction, according to Liechtenstein’s firm.
“We welcome Binance LCX to Liechtenstein. Blockchain technologies are laying the basis for an entirely new industry. We are confident that Liechtenstein's existing and future legal framework and practice provide a robust foundation for the Binance LCX and other Blockchain companies to provide exceptional services here in Liechtenstein," Adrian Hasler, Prime Minister of Liechtenstein has said.
In June, Zhao revealed a plan for Euro-to-crypto trading from the exchange new office in Malta. The fiat service should start later this year. However, there is no available information about the development of the plan.
Binance Malta-based crypto-to-fiat trading will be subject to the recently adopted EU anti-money laundering rules (AML) for cryptocurrency trading. The provisions include registration regime and customer verification checks for crypto-to-fiat-exchanges in a bid to end the anonymity associated with cryptocurrencies. Crypto-to-crypto services are out of the scope of the new 5th Revision of the EU Anti-Money Laundering Directive (5AMLD), which also includes beneficial ownership transparency rules.
In Singapore the regulatory environment is crypto-friendlier. The country’s virtual coin market has grown in recent years, especially after China’s ban on virtual currency trading last year and Singapore government plan not to follow Beijing. Singapore has attracted several big virtual coin investments including, Bitbox, a crypto exchange of the Japanese messaging application Line.