Singapore authorities will be ‘strict’ on bad behavior in the crypto industry

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2022-06-24 22:57:39

This is the first time that Singapore, the country where Terraform Labs and Three Arrows Capital are located, has spoken out after the controversies surrounding both.

Singapore authorities will be “strict” with bad behavior in the crypto industry. Photo: Reuters

The Monetary Authority of Singapore (MAS), the central bank and financial regulator of the lion island nation, has vowed not to condone bad behavior in the cryptocurrency sector.

Interview with newspaper Financial Times On June 23, MAS Fintech Director Mr. Sopnendu Mohanty said:

“We will not tolerate bad behavior in the market. If an organization makes a mistake, we will punish them severely and without hesitation.”

Mr. Mohanty’s comment was the first official statement from Singaporean authorities since two big names in the crypto industry, Terraform Labs and Three Arrows Capital, both of which were based in Singapore, experienced “troubles and problems”. problem” for the months of May and June, respectively.

As reported by CHK, Terraform Labs is the company behind two cryptocurrencies LUNA and UST that collapsed in just 1 week of May, wiping out $60 billion in total capitalization. Since then, there have been many lawsuits and legal actions against Terraform Labs and CEO Do Kwon in the US and Korea, while the project was “washed out” and redeployed in the form of Terra 2.0.

Meanwhile, Three Arrows Capital is one of the big-name investment funds that put money into the Terra ecosystem and is said to have suffered heavy losses after the collapse, leading to the inability to pay its debts and being destroyed by many units. other strict arrears. According to some allegations, the fund’s leaders received investments from many other institutions as well as fund management for crypto projects, and used this money to make transactions to “remove losses” later. the collapse of LUNA-UST. However, when the crypto market continued to decline in June, the investment amount of Three Arrows Capital also “evaporated” and they continuously kept silent when investors collected the money.

Three Arrows Capital in April 2022 announced it had moved its headquarters from Singapore to Dubai because of “legal pressures”.

Three Arrows Capital’s crisis is said to have affected Babel Finance, Finblox, Hoo and DeFiance Capital, including the investment app Voyager Digital, which claims the fund owes them more than $622 million and demands payment. money before June 27. BlockFi and Voyager are having to make “huge” loans from companies related to billionaire Sam Bankman-Fried of the FTX exchange.

Returning to the interview, Mr. Mohanty commented that the current downturn in the cryptocurrency market is the result of the world “relaxing” on the private monetary aspect.

The Fintech Director also stated that MAS will not easily issue licenses to crypto companies, but instead the process will be “extremely slow” and “strictly vetted”.

Up to now, MAS has only licensed 14 companies operating in the field of cryptocurrencies, including:

  • FOMO Pay: crypto payment app
  • Independent Reserve: Australia’s crypto exchange
  • DBS Vickers: the securities brokerage company of the DBS banking group
  • TripeA: crypto exchange
  • Coinhako: crypto exchange
  • Hodlnaut: crypto lending app
  • Digital Treasures Center: crypto payment company
  • Paxos: stablecoin issuer
  • Sygnum: digital asset bank
  • Revolut: crypto trading app
  • Luno: crypto trading/investing app
  • Crypto.com: cryptocurrency exchange
  • Genesis: crypto lending and custody company
  • Sparrow: crypto trading app

Synthetic CHK

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