Regulator Monetary Authority of Singapore (MAS ) oversaw the crypto sector and defended the actions it took against the crypto exchange Binance rather than the collapsed crypto platform FTX.
Singapore’s central bank clarifies stance on Binance and FTX
Monetary Authority of Singapore, the country’s central bank (MAS) issued a press release this week. A misunderstanding in the wake of the FTX.com (FTX) debacle.
Central Banks explained:
MAS proceeded to justify its actions against Binance rather than FTX. The former was placed on the central bank’s Investor Alert List (IAL), while the latter was not. The regulator clarified:
Neither Binance nor FTX are licensed here, but there are clear differences between the two. Binance was actively recruiting users in Singapore, but FTX was not.
Last September, the MAS ordered Binance to stop providing payment services to Singapore residents. A few months later, the cryptocurrency exchange closed exchange services in the city-state.
“In fact, Binance offered listings in Singapore dollars and accepted Singapore-specific payment modes such as Paynow and Paylah,” the central bank stressed, January to August 2021. More about MAS:
MAS placed Binance in the IAL for soliciting users in Singapore without a license. In addition, MAS’s inquiry prompted the Ministry of Commerce to launch an investigation into Binance for possible violations of the Payment Services Act (PS Act). The IAL had no reason for him to place FTX as there was no evidence that FTX violated his PS law.
Specifically commenting on FTX, the regulator said: Trading on FTX also failed to trade in Singapore dollars. However, as is the case with thousands of other financial and crypto entities operating abroad, users in Singapore were able to access his FTX service online. “
A recent study found that when Binance shut down in Singapore, its users switched to her FTX. Then, before the exchange collapsed, more Singaporean users were using his FTX.com website than any other country except South Korea.
Central Bank of Singapore Warns of Risks of Investing in Cryptocurrencies
“The most important lesson from the FTX debacle is The MAS warns:
Cryptocurrency exchanges can and will fail, even if they are licensed in Singapore. , are currently regulated only to address money laundering risks, not to protect investors.
In addition, the MAS emphasized that:
Following the FTX meltdown, Singapore’s government Temasek has written off its $275 million investment in cryptocurrency companies. Singapore has tried to de-risk retail cryptocurrency investors with restrictive rules.
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