Cryptocurrency exchange urges Singapore to implement ‘practical’ regulations in the wake of FTX’s collapse

Cryptocurrency exchange Independent Reserve wants Singapore to lift its ban on cryptocurrency advertising, urging instead for a regulatory framework that “really protects” consumers. Meanwhile, the country’s central bank dismissed suggestions it could have done more to protect investors amid the FTX debacle.

referring to the latter FTX breakdownThe Independent Reserve said “urgent and pragmatic regulatory action” was needed to safeguard Cryptocurrency investors in singapore. Specifically, it required licensed market players to be able to advertise their services and communicate with the public.

Founded in Australia in 2013, the fintech company later expanded to Singapore where it was based Obtained a major payment institution license To introduce digital payment token services in October last year. It offers cryptocurrency trading pairs in Singapore, Australia, New Zealand and the US dollar.

“The FTX situation has been a huge setback for the entire industry,” Independent Reserve CEO Adrian Przelozny said in a statement Tuesday. “It highlights the need for more transparency and accountability, and for a regulatory framework that actually protects consumers.”

“Silence hurts consumers the most,” said Berlozny. “It is essential that we look at practical steps to ensure that we are able to communicate responsibly with investors in Singapore as a licensed and regulated stock exchange. This will prevent investors from being exposed to and trading with unlicensed entities, and avoid a potential repeat of the recent FTX events.”

Singapore in Jan introduced prohibition guidelines Market players from marketing or advertising their services in public areas, such as ads on websites, social media and public transportation. Promotional banners or pop-up ads cannot, for example, be used to promote digital payment tokens or cryptocurrency services.

The Independent Reserve said banning marketing exposed consumers to cryptocurrency scams and unregulated exchanges because potential investors would turn to search engines, forums and social media as alternative sources.

She added that allowing regulated market players to directly engage local consumers will lead to greater awareness of safer options for investors who are genuinely interested in cryptocurrency.

The fintech company said it has seen its customers’ accounts more than double per month, as FTX users in Singapore scrambled to find more secure crypto deposits. This indicates continued interest and investment, despite the fluctuating currency and current market condition.

There is no protection for cryptocurrency customers

Meanwhile, the Monetary Authority of Singapore (MAS) announced on Monday Another statement was issued Regarding the collapse of FTX, stressing that it is not impossible to protect domestic users in the midst of this disaster – for example, by restricting assets – since the cryptocurrency exchange was not licensed in the country and was operating abroad.

The industry regulator also addressed suggestions that FTX should have been placed on an investor alert list, as it did with another crypto exchange Binance.

MAS said: “Although both Binance and FTX are not licensed here, there is a distinct difference between the two: Binance was actively attracting users in Singapore, while FTX was not.”

Binance also offered Singapore dollar listings and accepted Singapore-specific payment methods, such as PayNow, the regulator said. It noted that it had received numerous complaints filed against Binance between January and August of last year, and that other jurisdictions including Japan, the United Kingdom, and Thailand have cited Binance over unauthorized solicitation of customers.

MAS said there was no evidence that FTX solicited Singapore users and trades on the cryptocurrency exchange could not be transacted in Singapore dollars, though local users could still access its services online.

Binance has implemented measures to comply with MAS’s directive to stop user solicitation in Singapore, including removing the mobile app from local app stores and geo-blocking local IP addresses.

It was also not possible to provide information and include all offshore cryptocurrency exchanges, such as FTX, on the country’s investor alert list, MAS said. She added that the list served to warn the public about entities that might be wrongly assumed to be regulated by MAS.

The Singapore regulator said the collapse of FTX was another reminder that dealing in cryptocurrencies, on any platform, was “risky.”

“Cryptocurrency exchanges can fail. Even if a crypto exchange is licensed in Singapore, it will currently only be regulated to address money laundering risks, not to protect investors,” MAS said, adding that this framework is currently supported by most of the world. Judicial authorities.

“Even if a cryptocurrency exchange is well run, cryptocurrencies themselves are very volatile and many of them have lost all value,” she said. “The ongoing turmoil in the cryptocurrency industry is a reminder of the huge risks of trading in cryptocurrencies. There is no protection for customers who deal in cryptocurrencies. They can lose all their money.”

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