Could The Monetary Authority Of Singapore Have Protected FTX Users? – Report
The Monetary Authority of Singapore (MAS) has clarified why Binance was added to the Investor Alert List (IAL) but not FTX. MAS stated that FTX was not licensed by the MAS and operated offshore. Thus, it cannot protect FTX’s local users.
The MAS’ statement comes after FTX’s recent announcement that it would launch a crypto exchange in Singapore. The MAS said that it knows FTX’s plans to launch a crypto exchange in Singapore and has been in contact with the company.
However, the MAS clarified that it could not protect FTX’s local users as the crypto exchange is not licensed by the MAS and is operated offshore. The MAS added that investors must be aware of the risks of dealing with unlicensed exchanges, including losing their money.
The MAS also clarified queries on why it added Binance to the Investor Alert List (IAL) but not FTX. The MAS said that Binance is not licensed by the MAS and is not subject to MAS’ supervision.
The MAS added that it has been monitoring Binance’s activities and will continue to do so. Then, it advised investors to exercise caution when dealing with unlicensed exchanges. The financial watchdog advised investors to consult a professional financial adviser before making investment decisions.
Clarifying Controversies
Furthermore, Singapore’s financial watchdog has addressed questions and misconceptions following the collapse of FTX. The MAS urges Singaporeans to be cautious when dealing with cryptocurrency exchanges, as they are not subject to the same regulations as traditional financial institutions.
Meanwhile, it is not the first time the MAS has placed Binance on its IAL. In January 2021, it put the popular crypto exchange on the IAL after it actively pleaded for users in Singapore.
Binance even proposed listings in Singapore’s currency and accepted local modes of payment such as PayNow and PayLah. However, the Singaporean government is investigating the exchange for possible violations of the Payment Services Act.
The MAS alleges it is impossible to list all crypto exchanges and offshore crypto firms and that no global regulator has done so. Hence, it urges investors to be cautious when investing in cryptocurrencies.
Nevertheless, Ethereum co-founder Vitalik Buterin has spoken out against the MAS, saying that their skeptical approach to digital assets will likely prevent Singapore from becoming a thriving crypto hub.
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