Singapore Regulator Explains Actions Against Binance vs FTX — Warns Even Licensed Crypto Exchanges May Fail – Regulation Bitcoin News

The Monetary Authority of Singapore (MAS), the regulator that oversees the crypto sector, has defended its actions against crypto exchange Binance instead of the collapsed crypto platform FTX. The central bank also warned that cryptocurrencies are “very volatile and many of them have lost all their value.”

Singapore central bank clarifies stance on Binance and FTX

The Monetary Authority of Singapore (MAS), the country’s central bank, issued a press release this week “to address some questions and misunderstandings following the FTX.com (FTX) debacle”. .

The central bank explains:

MAS went on to justify its actions against Binance instead of FTX. The former was placed on the central bank’s Investor Alert List (IAL), while the latter was not. The regulator clarified:

Neither Binance nor FTX are licensed here, but there are obvious differences between the two. Binance was actively recruiting users in Singapore, but FTX was not.

MAS ordered Binance to stop providing payment services to Singapore residents in September last year. A few months later, the cryptocurrency exchange closed exchange services in the city-state.

“In fact, Binance offered listings in Singapore dollars and accepted Singapore-specific payment modes such as Paynow and Paylah,” the central bank stressed, adding that from January to August 2021, multiple complaints about Binance have been filed. I added that I did. :

MAS has placed Binance in the IAL for soliciting users in Singapore without a license. In addition, MAS’s inquiry prompted the Ministry of Commerce to launch an investigation into his Binance for possible violations of the Payment Services Act (PS Act). With no evidence that FTX violated the PS Act, the IAL had no reason for him to place FTX.

Commenting specifically on FTX, the regulator said: Trading on FTX also failed to trade in Singapore dollars. However, as is the case with thousands of other financial and crypto entities operating abroad, users in Singapore were able to access his FTX service online. “

A recent study found that users switched to FTX when Binance shut down in Singapore. Then, before the exchange collapsed, more Singaporean users were using his FTX.com website than any other country except South Korea.

Singapore’s Central Bank Warns About Risks Of Investing In Crypto

“The most important lesson learned from the FTX debacle is that dealing with any cryptocurrency on any platform is risky and investors can lose all their money,” MAS warned. did.

Crypto exchanges can and do fail. Even if cryptocurrency exchanges are licensed in Singapore, they are currently regulated only to address the risk of money laundering, not to protect investors.

Furthermore, MAS emphasizes that:

Following the FTX meltdown, Singapore’s government Temasek has written off its $275 million investment in the crypto firm. Singapore has tried to de-risk retail cryptocurrency investors with restrictive rules.

What do you think about the explanation by the Monetary Authority of Singapore? Let us know in the comments section below.

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