Colorful trees that glow at night, a spouting lion, and a boat-shaped infinity pool that promises the best view of the horizon 200 meters above sea level. Singapore is a hotspot.
The Asian city-state of lions has also held the place of a financial haven for companies and service providers in the crypto space for some time. Singapore is now home to crypto companies like CoinGecko or Crypto.com.
However, the Singapore government has recently taken a tougher stance towards crypto companies. Back in January this year, the Monetary Authority of Singapore (MAS), Singapore’s central bank and financial market regulator, issued new guidelines intended to drastically restrict the trading of cryptocurrencies like Bitcoin.
The then largest operator of crypto machines, Daenerys & Co., was brought to its knees. The result: on the streets of Singapore you can no longer withdraw coins from the machines.
“Brutally and unrelentingly harsh”
“We have zero tolerance for misbehavior in the market,” Singapore fintech chief Sopnendu Mohanty said in a recent statement to the Financial Times. Potential misconduct in the crypto scene must be countered “brutally and ruthlessly.” An announcement that is due, at least in part, to the recent Terra accident.
“And that is exactly what I think is good, that action is being taken against bad projects, which have often exploited the opening of Singapore,” Dr. Julian Hosp, CEO of local company Cake DeFi, explains to BTC- THREW OUT. “It makes it easier for good projects, like us at Cake DeFi for example, because as a customer you can clearly see that everything fits together.”
So is the Wild West over for Bitcoin and Co. on the Asian island state? Yes, says Hosp, in a way it is: “Singapore has certainly had its day as a crypto paradise where you can do whatever you want.” Therefore, there is no free pass for crypto service providers there. It does not have to be like that. The rules are “fair and clear and therefore offer a good mix of ease of trading and security for the customer,” adds Hosp. “This will establish Singapore much more as an international crypto hub, as customers around the world will know that Singapore businesses can be trusted.”
Does Bitcoin and Co. have to give way to the state?
One or the other is likely to be increasingly worried about the future of the former crypto haven. Is the government’s hand pressing too hard?
While Southeast Asia’s largest bank DBS recently backed out of crypto services, the government is looking to explore the DeFi sector with JP Morgan. Speaking to the Financial Times, Mohanty also revealed that he expects a central bank digital currency (CBDC) to be launched within the next three years.
Hosp sees CBDC as a double-edged sword: “Personally, I see any form of CBDC, especially where there is no privacy offering, although it is positive for crypto in general as people become much more aware of the problem. , but always critics”. for personal freedom.”
A balancing act that the Singaporean government is trying to master: “From what I’ve understood of Singapore so far, they want to bring parallel opportunities to the public and private sectors, which I really appreciate,” says Hosp.
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