By Shelly Melancon (Switzerland)
As most countries tighten their stance on cryptocurrency through various regulations, it has become increasingly difficult for crypto firms to avoid falling foul of regulatory agencies. Bitget is the latest virtual currency to have its operating license suspended after violating a Singaporean law. Bitget is currently on hold in the Asian country.
The incident began when Bitget began to promote Army Coin, a cryptocurrency associated with K-Pop. BTS, a South Korean pop group, is associated with K-Pop. Singaporean policymakers and K-Pop have been at odds for months, and it appears that if an agreement is not reached soon, the situation will worsen.
Bitget’s contentious decision to list the coin has resulted in an indefinite suspension of its services in Singapore. Despite having a suspended license in Singapore, Bitget still holds valid licenses in some countries.
Details Of The Suspension
According to official documents and announcements confirmed by the Guardian, Bitget ran afoul of the Monetary Authority of Singapore (MAS) after a series of activities leading to the listing of Army Coin on its platform. In October, Bitget had erroneously associated the Korean pop group with the coin.
The announcement was met with a warning from Hyde Corporation, the company that manages BTS. Hyde informed the world that the coin was not associated with its clients and put out a disclaimer against financial losses suffered by investors. The management company also said that it is ready to take Bitget to court over the issue.
The MAS did not comment on the development in October but waited until the exchange went ahead to list the coin before taking action. The MAS is known for its strict and prompt actions against erring financial services firms and institutions. Bitget is now officially suspended from offering cryptocurrency and digital asset trading services in the Asian country.
Stronger Crypto Regulations Underway
Due to its crypto-friendly policies, Singapore has seen an increase in the number of local and foreign crypto firms seeking trading licenses. But the Monetary Authority announced in November that it would take action to create and enforce stronger regulations on crypto in its domain. Crypto firms can expect stricter rules and monitoring from the agency in 2022.
Singapore will join other countries seeking stronger regulations for the crypto industry in a bid to protect consumers from losses. Far away in the US, regulators are reportedly seeking an understanding of crypto with the aim of passing regulations. But concerns about the impact of regulations have wracked the market in recent weeks.
Last week, the BTC price fell 20% to hit a new local low. Among other factors, the fear of stronger regulations caused traders to panic and enter a selling spree. But the market has since recovered by some margin.
The US Capitol requested a hearing and invited top crypto executives. The outcome of that hearing will play a strong factor in whatever regulations are enforced on the crypto market in 2022. Crypt exchanges will be on their toes to know how the regulations will affect them and what steps they can take to emerge stronger.
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