Binance Asia Services, the Singapore arm of major cryptocurrency exchange Binance, has acquired a stake in a local private securities exchange, Hg Exchange (HGX).
On Tuesday, the company officially announced the acquisition of a post-money 18% stake in HGX, a stock exchange licensed and regulated by the Monetary Authority of Singapore.
Binance Singapore CEO Richard Teng said that the new investment will help Binance and HGX expand the scale of products and services “supported by blockchain technology” in Singapore.
“Crypto and traditional financial offerings continue to converge. We aim to work collaboratively with HGX to enhance the blockchain ecosystem in Singapore,” Teng stated.
HGX is a community-driven private stock exchange, founded by financial institutions such as wealth management firm PhillipCapital, local financial services group PrimePartners and Fundnel, a Southeast Asian private investment technology platform. The exchange reportedly uses the Zilliqa blockchain.
After working as the CEO of the Financial Services Regulatory Authority at Abu Dhabi Global Market, Teng joined Binance Singapore as CEO in August 2021, a few years after the Singaporean branch was launched. According to the CEO, Binance continues working closely with “key government agencies” to support the growth of the blockchain ecosystem and is actively hiring local talent.
The new investment comes soon after Binance experienced some regulatory issues in Singapore. In late September, Binance restricted Singapore users from using its platform, citing compliance matters. Previously, Binance had limited product offerings in Singapore amid regulators alleging that the company may have violated payments laws.
Huobi opted to exit Singapore as a global company in order to launch a dedicated local entity in November 2021.