TechFlow news, the Monetary Authority of Singapore (MAS) has issued a statement addressing issues and misconceptions following the collapse of FTX. The statement noted that as FTX did not hold a license from MAS and operated offshore, MAS was unable to protect local Singaporean users on FTX. Furthermore, MAS has consistently warned the public about the risks of dealing with unregulated entities.
MAS also stated that it is impossible for any regulatory authority to comprehensively list and provide information on all global offshore cryptocurrency exchanges due to their sheer number—no regulator in the world does so. The most important lesson from the FTX collapse is that trading any cryptocurrency on any platform is inherently risky. Cryptocurrency exchanges can and do fail. Even if a crypto exchange holds a license in Singapore, current regulations are primarily aimed at mitigating money laundering risks, not at protecting investors. Moreover, even when crypto exchanges are well-managed, cryptocurrencies themselves remain highly volatile, with many having lost all their value.
Earlier reports indicated that MAS found no evidence that FTX directly solicited Singaporean users. The distinction between Binance and FTX is clear. The lessons from FTX's collapse underscore that crypto trading is risky and customers trading cryptocurrencies have no protection. Binance actively solicits users in Singapore, whereas FTX did not. The Ministry of Commerce has initiated an investigation into Binance, which is under scrutiny for potential breaches of the Payment Services Act.Original link
