The Monetary Authority of Singapore (MAS) has claimed in a statement that it warned its citizens about Binance Global Inc. because Binance was actively soliciting users when it was newly registered in the country but failed to warn everyone about FTX because it was not actively soliciting users.
In response to the Monetary Authority of Singapore’s (MAS) actions, many users have accused the regulatory body of misleading the public, claiming that if the regulators had not warned about Binance, the losses incurred from the FTX crash would not have been significant.
The MAS issued a statement on Monday, November 21, 2022, in response to “questions and misconceptions. ” Because the Bahamas-based FTX was not licensed by Singapore’s financial regulator and operated offshore, locals who used it were unprotected.
Concerns about how MAS handled FTX and Binance, the world’s two largest cryptocurrency exchanges, were also addressed. Although both cryptocurrency exchanges were unregulated in Singapore, there were differences between them, according to the regulatory watchdog.
Between January and August 2021, the regulator received several complaints about Binance, with one of the complaints alleging that the exchange giant was soliciting Singapore users without a license. Binance was consequently added to the Investor Alert List by MAS (IAL). On the recommendation of the MAS, the Commercial Affairs Department (CAD) also looked into Binance’s potential compliance with the Payment Services Act (PSA).
Although Singaporeans could access the platform online from the Bahamas, FTX was exempt from the same regulatory scrutiny as its competitor because, in the regulator’s opinion, it did not specifically target users in the Bahamas and did not engage in local currency trading. Furthermore, there was no evidence that the company had violated the PS Act.
The fallout from FTX has affected the entire crypto industry in some way, eliciting numerous reactions from the crypto market and industry stakeholders.
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