Tuesday, August 16, 2022

Singapore regulator’s clampdown on crypto trading

The Takeaway:

Singapore, one of the most crypto-friendly countries in the world have now changed its views regarding the crypto trading industry in the recent scams that had let many to lose their life savings.

Singapore’s financial regulator and central bank have pledged to be ‘brutal and unrelenting hard’ on any “Bad Behaviour” from the industry

As many had called out the government for being ____on the crypto market, the Monetary Authority of Singapore (MAS)’ chief Fintech officer has said:

“We have been called out by many cryptocurrencies for not being friendly, my response has been: Friendly for what? Friendly for a real economy or friendly for some unreal economy?” [1]

Introducing Licensing:

Singapore has now introduced licensing for crypto firms starting from 2021 and has been stringent on which companies were to get the license.

The worldwide cryptocurrency exchange Crypto.com, the digital currency broker Genesis, and the provider of digital asset solutions Sparrow received preliminary approvals from the Monetary Authority of Singapore (MAS) on June 21. [2]

With this, 14 licenses and in-principal permissions have been given to DPT service providers over the previous two years, including Stablecoin users, cryptocurrency exchanges, and conventional financial institutions.

In January, cryptocurrency providers were barred to advertise their services in public places as well as even the virtual public spaces such as digital print and in social media. This has caused many cryptocurrency providers major losses in marketing.

The Malaysian Anti-Money Laundering and Combating the Financing of Terrorism Agency (MAS) is expanding its ability to police cryptocurrency businesses as well. In April, the regulator passed new rules requiring businesses to obtain licenses and be subject to AML/CFT regulations if they wanted to offer services outside of Malaysia.


The losses of the companies:

Due to Singapore’s low taxation and reputation as one of the more crypto-friendly city-states, many cryptocurrencies were established there. However, regulatory tightening shows that is changing as the nation focuses on its Central Bank Digital Currency (CBDC).

In April, Three Arrows Capital, a hedge fund that has suffered heavy losses in the recent market downturn, said it will leave Singapore for Dubai, as the regulatory environment in Singapore sours. Earlier, Binance, the world’s largest crypto exchange by trading volume, shut down its Singapore unit and dropped its application for a license after MAS told it to stop all crypto transfers.[3]

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Chaintimes Team
Chaintimes Team
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