Binance, the world’s largest crypto exchange, is reportedly trying to secure cryptocurrency services in Singapore once again. The custodial arm of the exchange, Ceffu, is applying for a permit from the Monetary Authority of Singapore (MAS) in order to start providing crypto services in the country.

Singapore has been fairly open to cryptocurrencies in the past, but the country posed certain challenges for the exchange. In February 2021, Binance Asia Services, the Singapore affiliate of Binance, had to suspend operations after withdrawing its local license application in December 2021. The exchange cited “strategic, commercial, and developmental” issues as the reason for the closure.

Athena Yu, vice president at Ceffu, said: “Given the city’s reputation in innovation, good corporate governance and a strong regulatory framework, it’s no surprise that institutional investors are attracted to set up shop here.”

The MAS had previously imposed regulatory pressure on Binance, which caused the crypto exchange to exit the market when it decided not to renew its license in 2021. Jarek Jakubcek, the head of law enforcement training at Binance, said that the exchange has since made the necessary changes to meet the regulator’s requirements.

Binance.US, the United States arm of the crypto exchange, is also facing scrutiny from U.S. watchdogs. The exchange had planned to acquire the assets of bankrupt crypto lender Voyager Digital, but the proposal could violate certain local securities laws. The U.S. Securities and Exchanges Commission has also cracked down on the BUSD stablecoin, issued by Paxos, ordering the company to stop minting new tokens.

The MAS announced a proposal last year to expand its scope in order to better safeguard consumer interests. The new rules, which are expected to come into effect in the coming months, will not allow companies to lend out the digital coins owned by retail customers, and will also mandate that client assets are maintained separately from company holdings of any form. Furthermore, the MAS has declined credit lines to fund crypto purchases.

It remains to be seen if Binance will be able to secure a license and resume operations in Singapore. If successful, it could be a major step forward for the crypto exchange in the country.