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Singapore Regulator Explains Action Against Binance vs FTX — Warns Even Licensed Crypto Exchanges Can Fail

Singapore Regulator Explains Action Against Binance vs FTX — Warns Even Licensed Crypto Exchanges Can FailThe Monetary Authority of Singapore (MAS), the regulator overseeing the crypto sector, has defended the action it took against crypto exchange Binance and not the collapsed crypto platform FTX. The central bank also warned that cryptocurrencies are “highly volatile and many of them have lost all value.” Singapore’s Central Bank Clarifies Its Stance on Binance […]

Singapore Regulator Explains Action Against Binance vs FTX — Warns Even Licensed Crypto Exchanges Can Fail

The Monetary Authority of Singapore (MAS), the regulator overseeing the crypto sector, has defended the action it took against crypto exchange Binance and not the collapsed crypto platform FTX. The central bank also warned that cryptocurrencies are “highly volatile and many of them have lost all value.”

Singapore’s Central Bank Clarifies Its Stance on Binance and FTX

The Monetary Authority of Singapore (MAS), the country’s central bank, issued a press release this week “to address some questions and misconceptions that have arisen in the wake of the FTX.com (FTX) debacle.”

The central bank explained: “A first misconception is that it was possible to protect local users who dealt with FTX … MAS cannot do this as FTX is not licensed by MAS and operates offshore.”

The MAS proceeded to justify the action it took against Binance and not FTX. The former was placed on the central bank’s Investor Alert List (IAL) while the latter was not. The regulator clarified:

While both Binance and FTX are not licensed here, there is a clear difference between the two: Binance was actively soliciting users in Singapore while FTX was not.

The MAS ordered Binance to cease providing payment services to Singapore residents in September last year. A few months later, the crypto exchange shut down its exchange services in the city-state.

“Binance in fact went to the extent of offering listings in Singapore dollars and accepted Singapore-specific payment modes such as Paynow and Paylah,” the central bank stressed, adding that it received several complaints about Binance between January and August 2021. The MAS detailed:

MAS placed Binance on the IAL because it had solicited Singapore users without a licence. Further, on MAS’ referral, the Commercial Affairs Department commenced investigation into Binance for possible contravention of the Payment Services Act (PS Act). There was no reason to place FTX on the IAL as there was no evidence that it had contravened the PS Act.

Commenting on FTX specifically, the regulator noted: “There was no evidence that it was soliciting Singapore users specifically. Trades on FTX also could not be transacted in Singapore dollars. But as in the case of thousands of other financial and crypto entities that operate overseas, Singapore users were able to access FTX services online.”

A recent study indicated that when Binance shut down services in Singapore, its users switched to FTX. Subsequently, more users from Singapore were using the FTX.com website before the exchange collapsed than from any other country, except South Korea.

Singapore’s Central Bank Warns About the Risks of Investing in Crypto

Noting that “The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous” and investors “can lose all their money,” the MAS warned:

Crypto exchanges can and do fail. Even if a crypto exchange is licensed in Singapore, it would be currently only regulated to address money-laundering risks, not to protect investors.

Furthermore, the MAS emphasized: “Cryptocurrencies themselves are highly volatile and many of them have lost all value … The ongoing turmoil in the crypto industry serves as a reminder of the huge risks of dealing in cryptocurrencies.”

Following the meltdown of FTX, Singapore government’s Temasek wrote down its $275 million investment in the crypto company. Singapore has been trying to reduce risks for retail crypto investors with restrictive rules.

What do you think about the clarification by the Monetary Authority of Singapore? Let us know in the comments section below.

Source: Regulation Archives – Bitcoin News

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Breaking News: Yuga Labs Founder Steps Down for Health Reasons

NFT Entrepreneur and Yuga Labs founder Wylie Aronow, creator of Bored Ape Yacht Club and CryptoPunks, Takes Time Off for Health.

NFT Entrepreneur and Yuga Labs founder Wylie Aronow, creator of Bored Ape Yacht Club and CryptoPunks, Takes Time Off for Health after CHF Diagnosis.

Yuga Labs Founder Steps Down 

Wylie Aronow, one of the co-founders of Yuga Labs, recently announced that he will be taking a leave of absence from the company due to health reasons. In a tweet, he shared that he had been diagnosed with congestive heart failure. Aronow, who is also known by his pseudonym Gordon Goner, stated that the symptoms started last year and that he had delayed seeking medical attention so he could continue working. However, after undergoing testing, his doctor advised him to make significant changes to his lifestyle.

Aronow announced his departure from his role at Yuga Labs to focus on his health. In a statement, he stated that he would be taking a leave of absence to prioritize his well-being. Although he will no longer have a full-time position at the company, Aronow will continue to serve as a Board Member and Strategic Advisor, though the extent of his involvement in these capacities was not specified.

In a tweet, Aronow explained his departure. He stated that his chronic illness consumed most of his twenties and that he overexerted himself at Yuga Labs, working 12 hours daily. He regrets not finding balance, despite advice from those around him. Aronow’s priority now is to seek medical treatment and focus on healing.

Yuga Labs, with Aronow, gained recognition in early 2021. Aronow and co-founders Greg Solano (Gargamel), Zeshan (Sass), and Kerem (Tomato Ketchup) launched the Bored Ape Yacht Club (BAYC) NFT collection on April 23, 2021. The collection became a massive success. Although the NFTs were initially priced at .08 ETH per ape (around $190), they soon sold for over $100,000 on secondary markets.

Wylie remains a board member and advisor at Yuga Labs. In a Twitter thread, he expressed his confidence in Yuga’s future and the leadership of @cryptogarga. The addition of Daniel Alegre, soon-to-be former President and COO of Activision, further strengthens his positive outlook. Wylie also has a bright future ahead for his brand.

Source: Altcoin

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