Singapore Defends Itself Against Binance Stance Following FTX Collapse

PNT

Nov 22, 2022•2 min read

Singapore Defends Itself Against Binance Stance Following FTX Collapse

The Monetary Authority of Singapore (MAS) defended its stance on Binance.com and the collapsed cryptocurrency exchange FTX, following complaints about the unequal treatment of the two companies since the regulator had earlier warned the public about Binance.com.

Previously, Binance took actions to show that it has ceased soliciting and offering services to Singapore consumers, such as geo-blocking Singapore IP addresses or removing its app from Singapore app stores.

MAS said: “Should Binance decide now to dismantle some of these restrictions, it has to continue to comply with the prohibition against soliciting Singapore users without a licence.”

In a statement released on Monday, MAS reaffirmed the risk of cryptocurrency speculation and clarified its position with regard to Binance and the now-defunct exchange FTX.

The “clear difference”

Although FTX and Binance are both operating without a license in this country, it was reported that Binance has actively courted consumers in Singapore to the point of offering listings in Singapore dollars among other incentives, while FTX was not.

“Binance in fact went to the extent of offering listings in Singapore dollars and accepted Singapore-specific payment modes such as PayNow and PayLah,” MAS said.

In September 2021, MAS added Binance to the Investor Alert List (IAL) for soliciting Singapore users without a license. Additionally, it reported the incident to the police's Commercial Affairs Department, which opened an inquiry into Binance for potential Payment Services Act violations.

However, there was no proof that FTX was specifically courting users in Singapore. Singapore dollars could not be used to make trades on FTX. Therefore, MAS stated that there was no reason for listing FTX on the IAL because there was no proof that it had broken the Payment Services Act.

“The most important lesson from the FTX debacle is that dealing in any cryptocurrency, on any platform, is hazardous,” the MAS said. “There is no protection for customers who deal in cryptocurrencies. They can lose all their money.”

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