On Monday, the Monetary Authority of Singapore (MAS) announced that it cannot protect FTX’s local users because the crypto exchange was not licenced by the MAS and was run abroad. The MAS also addresses questions about why Binance was included on the IAL but FTX was left off.
Recent Released: Whales Move 400K ETH Amid Price Dump
In addition, it defends itself from the FTX scandal by explaining why it is impossible to include details on every offshore crypto exchange and cryptocurrency exchange on the Investor Alert List.
FTX and Binance: MAS Clears Up Some Confusion
The Monetary Authority of Singapore released a statement on November 21 clarifying several points following the FTX crash.
FTX did not have a licence from the MAS and instead ran its business in an offshore jurisdiction. It is therefore impossible to provide security for FTX local customers by isolating their funds or reserving funds for them.
Since FTX is based outside of Malaysia, MAS does not have jurisdiction over the company. Dealing with unlicensed businesses is fraught with risk, as MAS has often stressed.
Investors wanted to know why Binance was given preferential treatment by the MAS compared to FTX. Even though Binance, the largest cryptocurrency exchange in the world, was added to the IAL, FTX was not. Institutional and individual Singaporeans both ranked among FTX’s top investors. Among the largest shareholders of FTX was the Singaporean government investment arm, Temasek.
In a statement, the MAS said that Binance was added to the IAL because it had actively pursued Singaporean customers. Binance even experimented with Singapore Dollar listings and supported local payment methods like PayNow and PayLah. Between January 2021 and July 2021, Binance also faced charges from the Monetary Authority of Singapore.
FTX did not actively seek for customers in Singapore
To our knowledge, FTX did not actively seek for customers in Singapore. While FTX services were not physically available in Singapore, they were available online. In addition, the Payment Services Act (PS Act) was looked into by the Commercial Affairs Department, which concluded that FTX complied with the law but Binance did not.
The MAS further asserts that it is impossible to include every cryptocurrency exchange and offshore cryptocurrency company on the list. Furthermore, no governing body anywhere in the globe has taken this action. The regulator believes it has timely alerted investors about hazards in crypto investments.
Singapore Investors Are Majorly Affected
Singapore looks to convert into a crypto hub since investors commonly trade and invest in the crypto market. However, the MAS took a strong position after the crypto market fell owing to the Terra-LUNA issue. Singapore’s investors are heavily harmed by Terra and FTX debacles.
Ethereum co-founder Vitalik Buterin blasted the MAS for its harsh regulatory requirements. He feels Singapore’s ambition to become a crypto hub may not work due to its suspicious posture toward digital assets.
Source: Google Trend