Singapore Regulator Talks About Action Against Binance vs FTX, Warns Licensed Crypto Exchanges Could Succeed.
The Monetary Authority of Singapore (MAS), and the country’s central bank issued a press release this week saying that some questions and misconceptions have arisen with the FTX.com debacle. The central bank explained that the first assumption was wrong that it was possible to protect local users dealing with FTX but that MAS could not because FTX does not hold any valid license from MAS and operates through an offshore operation. Is. Binance instead of FTX was upheld for the proceedings. Where the former was placed on the alert list given by the central bank investors while the latter was not and clarified to the regulator that both Binance and FTX are not licensed here whereas the difference between the two is that Binance actively was adding users and increasing its speed in Singapore while FTX was not involved in any such work. The crypto exchange also ended its exchange services in the city and state just months after MAS told Binance last year to stop providing payment services to Singapore residents in September and not benefit from it. Where the central bank insisted that Binance actually went on to offer listings in Singapore dollars and accept specialized payment modes such as PayNau and Payla.
MAS placed Binance on IAL because it requested unlicensed access for users in Singapore, and also on the reference of MAS, the Department of Commercial Affairs opened an investigation of Binance for possible violations of the Payment Services Act and the process started. Where there was no reason or evidence to impose FTX on IAL who violated the PS Act.
Commenting specifically on FTX, the regulator says there is also no evidence that it was specifically soliciting users from Singapore. Trading on FTX also could not be done in Singapore Dollars, but it was fully capable and capable of serving Singapore users and accessing them online, as is the case with thousands of other financial and crypto institutions that operate overseas.
Recent studies have shown that when Binance terminated its services in Singapore, its users switched to FTX and then to the exchange earlier than in any other country except South Korea. More users from Singapore were using ftx.com.
MAS warned that the most important lesson we can take from the FTX debacle is that trading in any cryptocurrency is extremely dangerous and risky where you don’t know what is going to happen the next moment or the next step you will take. You will lose or double your investment. The part you own in any investment may or may not remain and investors often lose their money and their funds.
Crypto exchanges can succeed and fail even if any crypto exchange is licensed in Singapore it will be regulated only in the present to reduce money laundering and risk and not from security point of view. MAS stressed that cryptocurrency itself is a volatile digital asset and has given away much of its value at times and that the ongoing volatility and decline in crypto is a reminder of the other risks of dealing with risk. Where Singapore government Temasek lost its $275 million investment in crypto company after FTX incident and now plans and plans are being made to reduce risk with restrictive regulations for Kudra crypto investor.
