The Financial Authority of Singapore (MAS), the nation’s central financial institution, released an announcement on Nov. 21 to deal with “some questions and misconceptions which have arisen within the wake of the FTX.com (FTX) debacle.”
The primary level MAS needed to make was that it couldn’t defend native customers from the fallout from FTX collapse “equivalent to by ringfencing their property or making certain that FTX backed its property with reserves” as a result of “FTX will not be licensed by MAS and operates offshore. MAS has persistently warned concerning the risks of coping with unregulated entities.”
But, it was Binance that ended up on the MAS Investor Alert Record. That was as a result of Binance, not like FTX, was actively concentrating on customers in Singapore with choices denominated in Singapore {dollars} and fee choices via native transmitters. MAS famous that it had obtained “a number of” complaints about Binance between January and August 2021.
MAS made Binance cease soliciting Singaporean customers and take a number of measures to indicate its compliance, equivalent to geo-blocking native IP addresses. It additionally referred Binance to the nation’s Business Affairs Division to analyze whether or not the trade had violated the Cost Providers Act. Singaporean customers had been, nonetheless, capable of entry FTX providers.
Associated: MAS doesn’t belief retail crypto investments, mulling extra laws
The aim of the Investor Alert Record, MAS defined, is “to warn the general public of entities that could be wrongly perceived as being MAS-regulated, particularly these which solicit Singapore prospects for monetary enterprise with out the requisite MAS licence.” That doesn’t imply that the listing ought to include the entire “a whole bunch” of crypto exchanges worldwide, in keeping with MAS. “It’s not doable to listing all of them and no regulator on the earth has finished so,” it stated.
Hey @MAS_sg of Singapore, are you kidding me? A very powerful lesson that you simply discovered from FTX is that dealing in any cryptocurrency is “hazardous”? How about do some primary Due Diligence earlier than your sovereign fund @Temasek plows US$275M of your residents’ cash right into a ponzi pic.twitter.com/8Q6UYYYWlm
— Bobby Apelrod / / nicefeet.sol (@tofushit888) November 21, 2022
MAS went on to make intensive warnings concerning the volatility of crypto property, and conceded:
“Even when a crypto trade is licensed in Singapore, it will be presently solely regulated to deal with money-laundering dangers, to not defend traders. That is just like the strategy presently taken in most jurisdictions.”
MAS released a session paper on shopper protections for crypto customers in October, nonetheless.
State-owned funding agency Temasek issued an announcement on Nov. 19 saying that it had finished eight months of due diligence on FTX in 2021 with out discovering uncovering any issues. Singaporean police have issued a warning about phishing websites attempting to money in on the confusion surrounding the FTX collapse.
