MAS Explains Causes for Not Alerting Native Customers About FTX

The Financial Authority of Singapore acknowledged that there was no purpose to warning traders in opposition to FTX crypto trade because it did with Binance as a result of the previous didn’t actively solicit customers in Singapore.

This comes amid earlier speculations stating that the regulator’s motion in opposition to Binance induced Singaporean customers to shift to FTX thereby inflicting them to be caught within the trade’s collapse.

FTX Did Not Solicit Singapore Customers

In a assertion revealed on Monday (November 21, 2022), MAS responded to “questions and misconceptions” following FTX’s downfall. The Singaporean monetary regulator stated it was not doable to guard locals who used the Bahamas-based FTX because the crypto trade was not licensed by the company and operated offshore.

MAS additionally addressed issues about its remedy of the world’s largest crypto trade Binance, and FTX. The regulatory watchdog stated that whereas each crypto exchanges have been unregulated in Singapore, there was a distinction between them.

The regulator obtained a number of complaints about Binance between January and August 2021, including that the trade large was soliciting Singapore customers with out having a license. Consequently, MAS positioned Binance on the Investor Alert Record (IAL). Additionally, the Business Affairs Division (CAD) investigated Binance for doable violation of the Fee Companies Act (PSA) on MAS’ referral.

In the meantime, FTX didn’t undergo the identical remedy as its rival as a result of, in line with the regulator, it didn’t particularly solicit customers in Singapore and didn’t conduct trades within the native foreign money, though residents might entry the Bahamas-based platform on-line. There was additionally no proof that the agency violated the PS Act.

“Whereas each Binance and FTX will not be licensed right here, there’s a clear distinction between the 2: Binance was actively soliciting customers in Singapore whereas FTX was not. Binance in truth went to the extent of providing listings in Singapore {dollars} and accepted Singapore-specific fee modes comparable to PayNow and PayLah.”

MAS Repeats Warning About Crypto Dangers

MAS additionally reiterated its warning concerning the crypto trade, stating that the FTX disaster was an instance that participating in cryptocurrency was dangerous.

“The continuing turmoil within the crypto trade serves as a reminder of the large dangers of dealing in cryptocurrencies. As MAS has repeatedly acknowledged, there is no such thing as a safety for purchasers who deal in cryptocurrencies. They’ll lose all their cash.”

The collapse of one of many largest crypto exchanges has affected all aspects of the trade, each retail and institutional actors. As beforehand reported by CryptoPotato, court docket filings revealed that the bankrupt FTX owed over $3 billion to its high 50 collectors.