- Over 100 institutions that applied for crypto licenses in Singapore have been rejected or voluntarily withdrawn their paperwork.
- Per the Singaporean Central Bank, the efficiency of cryptocurrencies can encourage their abuse in vices like money laundering and proliferation financing.
Since Singapore announced that they would start regulating cryptocurrencies, over 170 institutions have applied for the licenses. Per reports, over 100 of these companies have already withdrawn their paperwork or are unqualified.
The Central bank of Singapore says that cryptocurrencies ought to have strict regulations since they may be subject to abuse by malicious intent.
Singapore enacts stringent crypto-regulation measures
Singapore has made the news by turning down over a hundred institutional applicants for crypto licenses. The regulation started in July when minister Tharman Shanmugaratnam addressed the parliament. He said that the country would begin issuing these licenses. Tharman also noted that over 90 crypto firms working in the country would be exempted until their permits are reviewed.
Per a representative of the Monetary Authority of Singapore, crypto companies must comply with the set guidelines to reduce the risks of crypto abuse. The spokesperson also added that these institutions would have to be diligent in their work, review transactions, and alert the government about any suspicions.
So far, three firms have received their crypto licenses, and their names also appear on the MAS website as listed firms. These companies include the Australian Independent Reserve, FOMO pay, and DBS Vickers Securities.
In September, the MAS asked Binance to cease providing cryptographic services in Singapore. However, this exchange only announced that their Singapore branch would close its operations last week. The Binance CEO said they would cease functioning in Singapore because of an 18% ownership stake in a Singaporean CEX, Hg Exchange. Contrary, Bloomberg announced that Binance would not operate there due to not meeting the set guidelines.
Investors are uncertain as to the world figures out how to regulate cryptos
Currently, crypto enthusiasts are confused as they wait to see how the crypto regulations will affect the market. In almost every major economy, lawmakers want their governments to regulate cryptocurrencies. Banks are also campaigning against cryptos since they ‘fear’ that these assets may grab their financial authority.
One of the first significant pieces of crypto regulation news came from China in September. The PBoC said that these assets threaten the economy; therefore, they are illegal to transact in China. They imposed a blanket ban and followed it up with crackdowns to arrest the ‘crypto ban lawbreakers.’
Recently, India was also on the road to installing a similar ban. However, the tables turned as the lawmakers rejected the ban. Even though the parliament unanimously agreed to turn down the ban, the country’s banks were not satisfied. They later claimed that they would do their best to regulate these assets.
However, not all banks and governments seek to completely ‘destroy’ cryptocurrencies. The US has said that it does not have plans to ban BTC. The SEC has also been issuing licenses for crypto products like ETFs. However, they also seem very strict about their guidelines since they have turned down some applicants. The fate of cryptos amid regulations remains to be known later on.