Binance.com – the world largest cryptocurrency exchange by volume – announced on 27 September 2021 that users in Singapore would not longer be able to access certain functions on Binance.com.
Previously, on Sept 2, Binance has already ceased P2P related services and other SGD trading pairing.
Unfortunately, Binance has taken another hit by MAS and was given a grace period of one month for Singapore users to withdraw their assets by 26 Oct 2021, 12pm UTC+8.
What Can You Expect From This?
Binance.com has also released an official statement dedicated to Singapore users:
Users in Singapore will not be able to access certain functions on Binance.com including:
- fiat deposit services,
- spot trading of cryptocurrencies,
- the purchase of cryptocurrencies through fiat channels and
- liquid swap
This brings a lot of inconvenience for Singapore users who trades actively. Since it is unclear on how long it would take for the compliance issue between MAS and Binance.com would be resolved, it’s advisable for users to comply and protect their assets as much as they can by withdrawing and stop using Binance.com until further notice.
How To Withdraw From Binance?
Option 1: Transfer Out With ERC20 Network
Binance Account to ERC20 supported Cryptocurrency Exchange
If you’re still intending to use another cryptocurrency exchange to trade, it’s recommended that you’re transferring your assets with ERC20 network to an ERC20 wallet address. Most cryptocurrency exchange supports ERC20 network, that’s why when you use ERC20 for your transfer, it’s going to make withdrawing to another cryptocurrency exchange a much smoother process.
Binance Account to ERC20 wallet
For SafePal users, you can refer to this article for more information on how you can transfer out of Binance to your SafePal Wallet.
If you’re using other type of wallet, you’ll need to ensure that you’ve selected the correct network for your wallet address which supports the cryptocurrency you’re transferring.
Option 2: Use BEP2 or BEP20 and convert to ERC20
People who usually holds a large amount of cryptocurrency assets can use BEP2 or BEP20 to save transaction fees by avoiding using ERC20 network. (provided if the wallet address support the network as well)
However, it is required to convert to ERC20 if the user wants to deposit their cryptocurrency assets to another exchange to continue trading.
It’ll be highly recommended for Singapore uses to make the conversion happen before 26th Oct 2021, 12pm since they will no long be able to access to quite a few features on Binance.com.
Converting cryptocurrency network is possible with SafePal Swap (Mobile App version), or with Binance Bridge. Depending on the selected cryptocurrency, there will be a minimum amount of cryptocurrency that is required for the transaction to take place.
Cryptocurrency holders with large amount of assets usually do not have an issue.
If you have not converted your assets from BEP2/BEP20 network to ERC20, you might face challenges. There is no telling at this point in time, if you’ll able to have access to Binance Bridge after 26 Oct. When a BEP2/BEP20 network is not supported by other platform, it makes it difficult to be used elsewhere other than Binance Smart Chain/ Binance Smart Chain related projects.
Option 3: Sell Assets and withdraw as Fiat
Some people might choose to leave the cryptocurrency trading industry entirely due to uncertainties regarding the regulations. They might prefer to sell their cryptocurrency assets and convert to SGD for withdrawal.
This is possible as long as they are completed before the stipulated date.
If you transfer and withdraw via Gemini, you’ll be able to save on withdrawal fee because Gemini allows a limit of 10 free withdrawal every month.
Where Do We Go From Here?
As compared to other exchanges, Binance.com offers much more exposure to other alt coins and products offerings than other cryptocurrency exchanges. It is unfortunate that Singapore users will not be able to utilise Biance.com platform to its fullest potential now.
We have no intentions of stopping any trading activities. In fact, we are currently using another cryptocurrency exchange while waiting for the regulations between Binance.com and MAS to change/improve/settled.
Choosing Alternative Cryptocurrency Exchange
Of course, there are many other cryptocurrency exchanges out there. But how can you look for a reliable cryptocurrency exchange to trade?
Here are some great questions you can ask yourself as a guide before committing to the cryptocurrency exchange:
How is the trading volume like for Spot Trading/ Derivatives Trading?
It’s important to have large trading volumes at crypto exchanges. Having large trading volume meant that they can avoid drastic price movement and also indicates the trustworthiness of a cryptocurrency platform
Is this cryptocurrency exchange restricted to serve any countries?
Not all countries are allowed to trade cryptocurrencies. Some cryptocurrency exchange, will prevent users from restricted countries to access their trading platform. So before you attempt to create an account, do KYC verification, or even depositing any funds, you should always check first.
Is this cryptocurrency exchange regulated in your country?
Some traders are very concerned about regulations since governments are making a move on cryptocurrency exchanges. Depending on where you are, you’ll need to check with your local regulators.
Singapore users can use this link from MAS to check whether the cryptocurrency exchange is regulated as an exempted entity under the Payment Services Act.
To check if they are no longer exempted for specific payment services for a specified period, use this link.To check use MAS Financial Institutions Directory, use this link.
Does this cryptocurrency exchange has the trading product that you need?
Say if you have found a certain cryptocurrency exchange. On first glance they seemed like a nice platform to use. However, their products might be not what you expect them to offer.
Some cryptocurrencies do not offer derivatives trading depending on the country of restrictions on the product and services they can provide to them.
So do take a look and see if the service you want is something you can find with that cryptocurrency exchange.
For example: Spot Trading, Margin Trading, Derivatives Trading, P2P Trading, Etc.
What is their trading fee like?
Trading fees are fees you have to pay for filing your order book. Cryptocurrency exchange charge differently and some are more expensive than the other.
If you’re someone who trades very frequently, it might be a good idea to save some on the trading fees.
What’s their deposit and withdrawal process?
Does this cryptocurrency exchange supports your local currency when it comes to depositing/withdrawing?
If the currency is not supported, you’d need to take into account of the currency exchange rate that your local bank may charge differently.
Also cryptocurrency exchanges sometimes do collect withdrawal fees from you just to get it processed and transferred to your bank account.
What’s their withdrawal fee?
Withdrawal fees are fees you need to pay to the cryptocurrency exchange when you’re attempting to withdraw your fiat to your local bank account.
Some cryptocurrency exchanges may charge really low trading fee but when it comes to withdrawing your funds, don’t be surprised to see an hefty fee.
Of course there are ways to lower your withdrawal fees just by looking for alternative platform to make that transaction happen.
Do they have good customer service?
What if there is an issue regarding your account which will affect your trades?
What if there is a service outrage to the website when you have an open trade?
What happens if you’ve really important enquiry to make regarding their services/product which is is also time sensitive?
You’ll never know when you need customer service support. It’s good to try their customer service support so that you know you can get the help you need to resolve your issues.
If you’re unable to get decent support for an easy enquiry, you might want to think twice about using their platform when your money is going to be involved.
Being involved with crypto doesn’t have to be hard or risky if you do your due diligence on research. When you mitigate risk, you’ll reduce exposure to potential major issues. More often than ever, your research will help you plan your next course of action with the help of the knowledge that you have learned about the cryptocurrency exchange.
Always trade responsibility and stay safe.
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