Staff’ Occasion MPs file questions on Govt’s safeguards for cryptocurrency in Singapore

Yao Ming

Ms He Ting Ru and Mr Dennis Tan

SINGAPORE — On Tuesday, Ms He Ting Ru and Mr Dennis Tan of the Staff’ Occasion (WP) filed parliamentary questions (PQs) surrounding the federal government’s management and safeguards on cryptocurrency, in mild of the chapter of cryptocurrency alternate FTX which has affected various Singaporean buyers together with Temasek Holdings.

These questions are on prime of the opposite questions filed in regard to Singapore’s two Sovereign Wealth Funds (SWFs) by different WP MPs for the upcoming parliamentary sitting on 28 November.

Posting concerning the PQs filed by the WP MPs, Ms He famous that the cryptocurrency markets had been rocked final week by the sudden collapse of FTX, as soon as once more drawing consideration to the dangers surrounding this comparatively new instrument and market.

“Of concern too was the investments made by Temasek into the alternate, and the announcement that these had been now being written all the way down to zero.” mentioned Ms He in her Fb put up and that the WP MPs look ahead to the talk on these vital subjects.

Ms He who’s the Member of Parliament for Seng Kang GRC, is asking the Prime Minister if the Financial Authority of Singapore (MAS) will take into account main a selected examine into the regulatory classes to be learnt from the collapse of cryptocurrency exchanges similar to Terra and FTX and whether or not is there a necessity for tighter necessities to make sure the soundness of regulated cryptocurrency exchanges in Singapore.

She additionally asks if the varied insolvencies of cryptocurrency exchanges and excessive volatility within the cryptocurrency markets within the final yr will have an effect on Singapore’s efforts to turn out to be a strong world blockchain and fintech hub and whether or not MAS will take into account additional regulatory measures to forestall any contagion into the broader cryptocurrency, fintech and monetary markets.

As to the chance of cryptocurrency, Ms He requested concerning the MAS’s necessities as to the prudential therapy of Singapore banks’ crypto asset publicity and what are the riskweighting necessities relevant to crypto asset exposures in assessing Singapore banks’ capital adequacy.

Ms He additional asks if there’s an estimated variety of Singapore buyers who’re affected by the insolvency of cryptocurrency buying and selling platform FTX and what the estimated dimension of whole investments is being affected and if there are any from retail buyers.

Mr Dennis Tan Lip Fong, MP for Hougang SMC is asking if the Authorities intends to introduce additional measures or safeguards to control cryptocurrency buying and selling or funding, in addition to to guard Singaporean retail buyers usually.

MAS’ actions on cryptocurrency

In a press launch on Monday (21 Nov), MAS mentioned that it’s a false impression that it may defend native customers who handled the cryptocurrency alternate, similar to by ringfencing their property or making certain that FTX backed its property with reserves, because it didn’t license FTX and the alternate operates offshore.

It additionally famous that the explanation why Binance was positioned on the Investor Alert Checklist (IAL) whereas FTX was not, is as a result of Binance was actively soliciting customers in Singapore whereas FTX was not.

MAS mentioned Binance had, in truth, gone to the extent of providing listings in Singapore {dollars} and accepted Singapore-specific fee modes similar to PayNow and PayLah.

It shared that it acquired a number of complaints about Binance between January and August 2021. There have been additionally bulletins in a number of jurisdictions of unlicensed solicitation of consumers by Binance throughout the identical interval.

Then again, MAS claims that there was no proof that FTX was soliciting Singapore customers particularly and trades on FTX additionally couldn’t be transacted in Singapore {dollars}. Nevertheless, it additionally famous that Singapore customers had been nonetheless in a position to entry FTX providers on-line.

A contributor to TOC famous that FTX does have a Singapore-registered subsidiary, Quoine PTE LTD which acquired an exemption for a MAS license and has been actively soliciting Singaporean customers.

He notes that Quoine permits Singaporean customers to register utilizing their SingPass and that it has just lately halted withdrawal on its Liquid alternate platform, blaming FTX’s chapter in america.

He requested whether or not MAS ought to have required Quoine to ringfence its Singaporean clients’ funds as a situation for its MAS license software.

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