The Financial Authority of Singapore acknowledged that there was no motive to warning traders towards FTX crypto alternate because it did with Binance as a result of the previous didn’t actively solicit customers in Singapore.
This comes amid earlier speculations stating that the regulator’s motion towards Binance induced Singaporean customers to shift to FTX thereby inflicting them to be caught within the alternate’s collapse.
FTX Did Not Solicit Singapore Customers
In a statement revealed on Monday (November 21, 2022), MAS responded to “questions and misconceptions” following FTX’s downfall. The Singaporean monetary regulator stated it was not doable to guard locals who used the Bahamas-based FTX because the crypto alternate was not licensed by the company and operated offshore.
MAS additionally addressed considerations about its remedy of the world’s largest crypto alternate Binance, and FTX. The regulatory watchdog stated that whereas each crypto exchanges have been unregulated in Singapore, there was a distinction between them.
The regulator obtained a number of complaints about Binance between January and August 2021, including that the alternate large was soliciting Singapore customers with out having a license. Consequently, MAS positioned Binance on the Investor Alert Checklist (IAL). Additionally, the Industrial Affairs Division (CAD) investigated Binance for doable violation of the Cost Providers Act (PSA) on MAS’ referral.
In the meantime, FTX didn’t undergo the identical remedy as its rival as a result of, based on the regulator, it didn’t particularly solicit customers in Singapore and didn’t conduct trades within the native forex, though residents might entry the Bahamas-based platform on-line. There was additionally no proof that the agency violated the PS Act.
“Whereas each Binance and FTX will not be licensed right here, there’s a clear distinction between the 2: Binance was actively soliciting customers in Singapore whereas FTX was not. Binance actually went to the extent of providing listings in Singapore {dollars} and accepted Singapore-specific fee modes comparable to PayNow and PayLah.”
MAS Repeats Warning About Crypto Dangers
MAS additionally reiterated its warning in regards to the crypto trade, stating that the FTX disaster was an instance that participating in cryptocurrency was dangerous.
“The continued turmoil within the crypto trade serves as a reminder of the large dangers of dealing in cryptocurrencies. As MAS has repeatedly acknowledged, there is no such thing as a safety for purchasers who deal in cryptocurrencies. They will lose all their cash.”
The collapse of one of many largest crypto exchanges has affected all aspects of the trade, each retail and institutional actors. As beforehand reported by CryptoPotato, courtroom filings revealed that the bankrupt FTX owed over $3 billion to its prime 50 collectors.
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