The Financial Authority of Singapore (MAS) didn’t place the now-collapsed crypto exchange FTX on its Investor Alert Checklist because it had no proof that the latter was soliciting Singapore customers particularly.
In a press release addressing some questions and misconceptions which have arisen, the regulator drew comparisons with one other crypto alternate – Binance.
MAS stated that whereas each Binance and FTX are usually not licensed right here, Binance was actively soliciting customers in Singapore whereas FTX was not.
Binance even went on to supply listings in Singapore {dollars} and accepted Singapore-specific cost modes similar to PayNow and PayLah, prompting a flurry of complaints in opposition to the crypto alternate.
Moreover, regulators from Italy, Japan, Malaysia, UK and Thailand additionally made bulletins relating to the operation of Binance with out the requisite licenses of their jurisdictions.
This prompted MAS to place Binance on its Investor Alert List in September 2021 and several other days after that, the crypto alternate ceased providing its services and products.
Binance had additionally put in place numerous measures together with geo-blocking of Singapore IP addresses and the removing of its cell utility from Singapore app shops.
These measures had been supposed to display past doubt that Binance had ceased soliciting and offering providers to Singapore customers.
MAS asserts that ought to Binance resolve to dismantle a few of these restrictions shifting forwrad, it has to proceed to adjust to the prohibition in opposition to soliciting Singapore customers with no license.
Moreover, on MAS’ referral, the Business Affairs Division commenced investigation into Binance for doable contravention of the Fee Companies Act (PS Act)
Following this, Binance determined to drop its licensing plans in Singapore altogether in December 2021 and as an alternative targeted on securing regulatory approvals from Bahrain, Dubai and Abu Dhabi.
In distinction to Binance’s actions, trades on FTX couldn’t be transacted in Singapore {dollars}. This gave MAS no cause to position FTX on the Investor Alert Checklist as there was no proof that it had contravened the PS Act.
The regulator clarified that the aim of the Investor Alert Checklist s to warn the general public of entities which may be wrongly perceived as being MAS-regulated, particularly these which solicit Singapore clients for monetary enterprise with out the requisite MAS license.
Nonetheless, MAS says that it’s unimaginable to exhaustively listing all of the offshore crypto exchanges on the earth as no regulator on the earth has performed so.
MAS concluded the assertion by reiterating its stance on crypto trading by including that at present there isn’t any safety for patrons who deal in cryptocurrencies.
“An important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous. Crypto exchanges can and do fail. Even when a crypto alternate is licensed in Singapore, it might be at present solely regulated to handle money-laundering dangers, to not defend buyers.
That is just like the strategy at present taken in most jurisdictions. MAS has just lately published a session paper proposing primary investor safety measures for crypto gamers who’re licensed to function in Singapore.”
