BINANCE CUSTODY PARTNER CLARIFIES SINGAPORE LICENSING PLANS

In a landscape rife with speculation, Binance has moved to clarify recent reports suggesting a renewed push for crypto licensing within Singapore.Dispelling rumors of direct involvement, the global cryptocurrency exchange has officially stated that its independent institutional custody partner, Ceffu, is taking the lead in pursuing regulatory approval. Amid various reports about Binance trying to revive its crypto licensing plans in Singapore, the crypto exchange has set the record straight. Binance told Cointelegraph that Ceffu, itsThis strategic move separates Binance's activities from Ceffu's pursuit of an institutional crypto custody license from the Monetary Authority of Singapore (MAS). BENGALURU - Binance s custody unit Ceffu said on Thursday it is planning to apply for a permit to offer payment services in Singapore, as the crypto exchange makes another attempt to function inThe announcement underscores a deliberate effort to operate within the evolving regulatory frameworks of Singapore, signaling a commitment to compliance and fostering trust within the digital asset ecosystem.But what does this mean for the future of crypto custody in Singapore? Amid various reports about Binance trying to revive its crypto licensing plans in Singapore, the crypto exchange has come out to set the record straight. Binance told Cointelegraph that Ceffu, its independent institutional custody partner, is the one looking to apply for an institutional crypto custody license when Singapore s central bankHow will Ceffu navigate the stringent requirements of the MAS, and what benefits will this bring to institutional investors seeking secure and reliable digital asset storage? Binance recently rebranded its custody arm, now called Ceffu, which launched in Singapore in November 2025. Amid various reports about Binance trying to revive its crypto licensing plans in Singapore, the crypto exchange has set the record straight. Binance told Cointelegraph that Ceffu, its independent institutional custody partner, will apply for an institutional crypto custody licenseUnderstanding these nuances is crucial for anyone involved or interested in the future of cryptocurrency in Singapore.This article dives deep into Ceffu’s plans, the implications for Binance, and the broader regulatory landscape.

Ceffu's Independent Pursuit of Singapore Licensing

The core of this announcement revolves around the independent pursuit of a crypto custody license by Ceffu, Binance's custody arm. Amid various reports about Binance trying to revive its crypto licensing plans in Singapore, the crypto exchange has set the record straight. Binance told Cointelegraph that Ceffu, its independent institutional custody partner, will apply for an institutional crypto custody license when SingaporeThis clarifies that Binance itself isn't directly applying for a license in Singapore. Binance recently rebranded its custody arm, now called Ceffu, which launched in Singapore in November 2025. Amid various reports about Binance trying to revive its crypto licensing plans in Singapore, the crypto exchange has come out to set the record straight. Binance told Cointelegraph that Ceffu, its independent institutional custody partner, is the one looking to apply for anThe distinction is significant, highlighting a strategic approach to navigating the complex regulatory environment.

Binance, acknowledging the widespread reports, issued a statement emphasizing Ceffu's role.This strategy allows Binance to continue focusing on its global operations while Ceffu concentrates on meeting the specific regulatory requirements of Singapore.

Why Singapore? Cointelegraph reached out to Ceffu about the Singapore crypto market and its upcoming plans to offer crypto custody services to institutional clients. Athena Yu, vice president of Ceffu, told Cointelegraph that Singapore has a strong reputation for innovation, good corporate governance, and a strong regulatory framework.Ceffu's Perspective

According to Athena Yu, Vice President of Ceffu, Singapore holds a strong appeal as a jurisdiction for crypto custody services.Yu highlights several key factors driving Ceffu's decision:

• Innovation Hub: Singapore is renowned for its innovative spirit and forward-thinking approach to technology.
• Corporate Governance: The country boasts a strong reputation for good corporate governance, essential for building trust in financial services.
• Regulatory Framework: Singapore offers a robust and well-defined regulatory framework, providing clarity and stability for crypto businesses.

These factors collectively create a favorable environment for Ceffu to offer its institutional crypto custody services.

Understanding Ceffu's Role as Binance's Custody Partner

Ceffu, previously known as Binance Custody, underwent a rebranding to solidify its position as an independent entity.It launched in Singapore in November 2025 (Note: There appears to be a date error in the source snippets, assuming the year is meant to be 2022 or 2023).This independence is critical for complying with regulatory requirements that often demand separation of custody functions from exchange operations.

The primary function of Ceffu is to provide secure and compliant custody solutions for institutional clients.This includes:

• Storing digital assets securely offline, mitigating the risk of hacking and theft.
• Implementing robust security protocols and internal controls to protect client assets.
• Complying with regulatory requirements related to anti-money laundering (AML) and know-your-customer (KYC) procedures.

By offering these services, Ceffu enables institutional investors to participate in the cryptocurrency market with confidence, knowing their assets are protected by a trusted custodian.

The Importance of Institutional Custody

Institutional custody plays a vital role in the growth and maturation of the cryptocurrency market.Large institutional investors, such as hedge funds, asset managers, and pension funds, require a high level of security and regulatory compliance before investing in digital assets.

Without robust custody solutions, these institutions are hesitant to allocate significant capital to crypto due to concerns about:

• Theft and hacking.
• Regulatory uncertainty.
• Lack of insurance coverage.

Ceffu's efforts to obtain a license in Singapore demonstrate a commitment to meeting these institutional needs and fostering greater adoption of cryptocurrency by traditional financial players.

What Does This Mean for Binance?

While Ceffu operates independently, its success in Singapore ultimately benefits Binance.By having a compliant custody partner, Binance can offer its institutional clients a comprehensive suite of services, including trading and custody.

This allows Binance to:

• Attract and retain institutional clients.
• Expand its market reach.
• Strengthen its reputation as a reliable and trustworthy crypto platform.

Furthermore, Ceffu's success in Singapore could pave the way for Binance to re-enter the market in the future, once regulatory clarity is established.

Binance's Previous Challenges in Singapore

It's important to remember that Binance previously faced challenges in Singapore, ultimately withdrawing its application for a payment services license in 2021.This decision stemmed from concerns raised by the MAS regarding Binance's global operations and regulatory compliance.

The current strategy of having Ceffu independently pursue a custody license represents a more measured and strategic approach, demonstrating a commitment to addressing the concerns raised by regulators.

Singapore's Regulatory Landscape for Crypto

Singapore has emerged as a leading hub for fintech innovation, including cryptocurrency.The MAS has adopted a pragmatic approach to regulating the industry, aiming to foster innovation while mitigating risks.

Key aspects of Singapore's regulatory framework include:

• The Payment Services Act (PSA): This act regulates payment services, including digital payment token (DPT) services.
• Licensing requirements: Crypto businesses operating in Singapore are required to obtain a license from the MAS.
• AML/KYC regulations: Crypto businesses must comply with stringent AML/KYC regulations to prevent money laundering and terrorism financing.

The MAS has made it clear that it expects crypto businesses to adhere to the highest standards of compliance and corporate governance.Ceffu's pursuit of a license underscores its commitment to meeting these expectations.

Understanding the Payment Services Act (PSA) and Its Implications

The Payment Services Act (PSA) is the cornerstone of Singapore's regulatory framework for payment services, including those related to digital payment tokens (DPTs), commonly known as cryptocurrencies.The PSA aims to provide a comprehensive and flexible framework that promotes innovation while safeguarding consumer interests and maintaining financial stability.

Under the PSA, businesses offering DPT services in Singapore are required to obtain a license from the Monetary Authority of Singapore (MAS).There are three main types of licenses:

1. Money-Changing License: Allows businesses to provide money-changing services.
2. Standard Payment Institution License: Allows businesses to provide a limited range of payment services, subject to certain thresholds.
3. Major Payment Institution License: Allows businesses to provide a full range of payment services, including DPT services, without volume restrictions.

The type of license required depends on the nature and scale of the payment services offered.Companies dealing with cryptocurrencies, such as exchanges, custodians, and payment processors, typically need to apply for a Standard or Major Payment Institution License.

Navigating the Licensing Process with the MAS

The licensing process with the MAS is rigorous and requires companies to demonstrate compliance with a wide range of regulatory requirements.These requirements include:

• Capital Adequacy: Maintaining sufficient capital reserves to cover operational risks.
• Cybersecurity: Implementing robust cybersecurity measures to protect customer data and assets.
• AML/KYC: Adhering to strict anti-money laundering and know-your-customer procedures.
• Corporate Governance: Establishing sound corporate governance practices.
• Business Continuity: Having a business continuity plan in place to ensure the continuity of services in the event of disruptions.

The MAS conducts thorough due diligence on applicants, assessing their financial stability, operational capabilities, and compliance frameworks.The licensing process can be lengthy and complex, requiring significant resources and expertise.

The Future of Crypto Custody in Singapore

Ceffu's application for a crypto custody license marks a significant step towards the development of a more mature and regulated crypto market in Singapore.If successful, it could attract more institutional investors to the market and spur further innovation in the digital asset space.

However, the regulatory landscape is constantly evolving, and crypto businesses must remain vigilant and adapt to new requirements.The MAS is expected to continue refining its regulatory framework to address emerging risks and opportunities in the crypto industry.

Challenges and Opportunities for Crypto Businesses

Crypto businesses operating in Singapore face a number of challenges, including:

• Regulatory uncertainty: The regulatory landscape is still evolving, and businesses must stay informed about new developments.
• Compliance costs: Meeting the stringent regulatory requirements can be costly and time-consuming.
• Competition: The crypto market is highly competitive, and businesses must differentiate themselves to succeed.

Despite these challenges, Singapore offers a number of opportunities for crypto businesses, including:

• Access to capital: Singapore is a major financial center with access to a large pool of capital.
• Talent pool: Singapore has a highly skilled workforce, including expertise in fintech and blockchain.
• Supportive ecosystem: Singapore has a supportive ecosystem for startups and innovation.

Practical Considerations for Institutional Investors

For institutional investors considering investing in cryptocurrency, choosing a reputable and compliant custody provider is paramount.Here are some key considerations:

• Regulatory status: Ensure the custody provider is licensed and regulated by a reputable authority, such as the MAS in Singapore.
• Security measures: Evaluate the provider's security protocols and internal controls to ensure the safety of your assets.
• Insurance coverage: Check whether the provider offers insurance coverage to protect against theft or loss of assets.
• Reputation and track record: Research the provider's reputation and track record in the industry.
• Fees and pricing: Compare the provider's fees and pricing structure to ensure they are competitive and transparent.

By carefully considering these factors, institutional investors can mitigate the risks associated with investing in cryptocurrency and ensure the safety of their assets.

Addressing Common Questions about Crypto Custody

Here are some frequently asked questions about crypto custody:

Q: What is crypto custody?

A: Crypto custody refers to the secure storage and management of digital assets on behalf of clients.Custodians are responsible for protecting the private keys that control access to the assets.

Q: Why is custody important?

A: Custody is crucial for ensuring the safety and security of digital assets.Without proper custody solutions, assets are vulnerable to theft, hacking, and loss.

Q: What are the different types of custody solutions?

A: There are two main types of custody solutions: self-custody and third-party custody.Self-custody involves storing your own private keys, while third-party custody involves entrusting your assets to a custodian.

Q: What are the benefits of using a third-party custodian?

A: Third-party custodians offer several benefits, including enhanced security, regulatory compliance, and insurance coverage.

Q: What are the risks of using a third-party custodian?

A: The main risk of using a third-party custodian is the possibility of the custodian becoming insolvent or being hacked.However, choosing a reputable and regulated custodian can mitigate these risks.

Conclusion: A Strategic Move in a Dynamic Landscape

Ceffu's proactive approach to securing an institutional crypto custody license in Singapore signals a strategic alignment with the evolving regulatory demands of the digital asset space.By clarifying that Ceffu, and not Binance directly, is pursuing this license, the exchange demonstrates a commitment to working within established legal frameworks.This move is not only a testament to Singapore's prominence as a hub for innovation and good governance, but also reflects a broader trend of institutionalizing cryptocurrency through secure and compliant custody solutions.As Ceffu navigates the licensing process, its success will undoubtedly contribute to the maturity and stability of the crypto market in Singapore, attracting further institutional investment and solidifying the country's position as a leader in the global digital asset ecosystem.Key takeaways include the separation of custody from exchange operations, the importance of regulatory compliance, and the growing demand for institutional-grade custody solutions.It remains to be seen how the MAS will respond, but Ceffu's application undoubtedly marks an important development in the ongoing evolution of crypto in Singapore.Are you ready to explore institutional crypto investment?Contact Ceffu or other regulated custodians to learn more about their services.