7*24

Hot topic

Market

Activities

The Monetary Authority of Singapore (MAS) released “Statement to Address Misconceptions in the Wake of Collapse of FTX.” MAS said that it cannot protect local users who dealt with FTX as FTX is not licensed by MAS and operates offshore. MAS has consistently warned about the dangers of dealing with unregulated entities. MAS also explained why MAS treated Binance differently from FTX, specifically why it was placed on the Investor Alert List (IAL) while FTX was not. While both Binance and FTX are not licensed here, there is a clear difference between the two: Binance was actively soliciting users in Singapore while FTX was not. Binance in fact went to the extent of offering listings in Singapore dollars and accepted Singapore-specific payment modes such as PayNow and PayLah. MAS received several complaints about Binance between January and August 2021. There were also announcements in multiple jurisdictions of unlicensed solicitation of customers by Binance during the same period. With regard to FTX, there was no evidence that it was soliciting Singapore users specifically. Trades on FTX also could not be transacted in Singapore dollars. Further, on MAS’ referral, the Commercial Affairs Department commenced investigation into Binance for possible contravention of the Payment Services Act (PS Act). MAS required Binance to stop soliciting Singapore users. To assure MAS that it was no longer doing so, Binance put in place various measures including geo-blocking of Singapore IP addresses and the removal of its mobile application from Singapore app stores. These measures were intended to demonstrate beyond doubt that Binance had ceased soliciting and providing services to Singapore users. MAS said that there are hundreds of offshore crypto exchange, and thousands of other entities offshore that accept investments in non-crypto assets. It is not possible to list all of them and no regulator in the world has done so. The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous. Crypto exchanges can and do fail. Even if a crypto exchange is licensed in Singapore, it would be currently only regulated to address money-laundering risks, not to protect investors. Further, even if a crypto exchange is well-managed, cryptocurrencies themselves are highly volatile and many of them have lost all value.

Detail

【MAS: It cannot protect FTX local users, FTX debacle shows any crypto trading platform is at risk】The Monetary Authority of Singapore (MAS) released “Statement to Address Misconceptions in the Wake of Collapse of FTX.” MAS said that it cannot protect local users who dealt with FTX as FTX is not licensed by MAS and operates offshore. MAS has consistently warned about the dangers of dealing with unregulated entities. MAS also explained why MAS treated Binance differently from FTX, specifically why it was placed on the Investor Alert List (IAL) while FTX was not. While both Binance and FTX are not licensed here, there is a clear difference between the two: Binance was actively soliciting users in Singapore while FTX was not. Binance in fact went to the extent of offering listings in Singapore dollars and accepted Singapore-specific payment modes such as PayNow and PayLah. MAS received several complaints about Binance between January and August 2021. There were also announcements in multiple jurisdictions of unlicensed solicitation of customers by Binance during the same period. With regard to FTX, there was no evidence that it was soliciting Singapore users specifically. Trades on FTX also could not be transacted in Singapore dollars. Further, on MAS’ referral, the Commercial Affairs Department commenced investigation into Binance for possible contravention of the Payment Services Act (PS Act). MAS required Binance to stop soliciting Singapore users. To assure MAS that it was no longer doing so, Binance put in place various measures including geo-blocking of Singapore IP addresses and the removal of its mobile application from Singapore app stores. These measures were intended to demonstrate beyond doubt that Binance had ceased soliciting and providing services to Singapore users. MAS said that there are hundreds of offshore crypto exchange, and thousands of other entities offshore that accept investments in non-crypto assets. It is not possible to list all of them and no regulator in the world has done so. The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous. Crypto exchanges can and do fail. Even if a crypto exchange is licensed in Singapore, it would be currently only regulated to address money-laundering risks, not to protect investors. Further, even if a crypto exchange is well-managed, cryptocurrencies themselves are highly volatile and many of them have lost all value.

MAS: It cannot protect FTX local users, FTX debacle shows any crypto trading platform is at risk

Disclaimer：The content above does not represent HTX's positions.，HTX does not provide any trading recommendations.。

Related Articles

All Comments0LatestHot

Trending Topics

Related Articles