Home CryptocurrencyAltcoin Singapore’s central bank explains why Binance was on its alert list but FTX was not

Singapore’s central bank explains why Binance was on its alert list but FTX was not

by SuperiorInvest

Monetary Authority of Singapore (MAS), the country’s central bank, released statement on Nov. 21 that addresses “some of the questions and misconceptions that have arisen in the wake of the FTX.com (FTX) debacle.” The agency explained its

The first point that MAS wanted to emphasize was that it cannot protect local users from the fallout from FTX’s collapse “such as securing their assets or ensuring that FTX covers its assets with reserves” because “FTX is not licensed by MAS and operates offshore. MAS constantly warns of the dangers of dealing with unregulated entities.”

Yet it was Binance that ended up on the MAS Investor Alert List. This was because Binance, unlike FTX, actively targeted users in Singapore with Singapore dollar offerings and payment options through local broadcasters. MAS noted that it received “several” complaints about Binance between January and August 2021.

MAS forced Binance to stop requiring Singaporean users and take several measures to demonstrate compliance, such as geo-blocking local IP addresses. Binance also referred the country’s commercial department to investigate whether the exchange violated the Payment Services Act. However, Singaporean users were able to access FTX services.

Related: MAS distrusts retail crypto investments and considers further regulation

The purpose of the Investor Alert List, the MAS explained, is to “warn the public against entities that may be misperceived as regulated by the MAS, particularly those soliciting Singaporean customers for financial business without the required MAS license.” This does not mean that the list should include all “hundreds” of crypto exchanges worldwide, according to MAS. “It is not possible to list them all and no regulatory body in the world has done so,” it said.

The MAS further warned extensively about the volatility of cryptoassets, admitting:

“Even if a crypto exchange were licensed in Singapore, it would currently only be regulated to address money laundering risks, not to protect investors. This is similar to the approach currently used in most jurisdictions.”

MAS released however, a consultation document on consumer protection for cryptocurrency users in October.

State investment firm Temasek issued a statement on November 19 saying yes performed eight months of due diligence to FTX in 2021 without any issues being revealed. Singapore police have issued a warning about phishing sites trying to capitalize on the confusion surrounding the collapse of FTX.

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