SINGAPORE: Singapore takes a strong stance against crypto speculation and trading even as it embraces innovation around the "tremendous potential" of digital assets, Deputy Prime Minister Lawrence Wong said on Thursday (Nov 17).
Digital assets are an “important enabler” that could transform financial markets, cross-border payments, settlements and capital markets, Mr Wong said during a panel discussion at the Bloomberg New Economy Forum.
“But - and we've said this for a long time, even when people criticised us for saying (it) ... We need to take a strong stance against crypto speculation and trading, especially by retail investors,” he added.
Mr Wong, who is also Finance Minister, was responding to a question from Mr John Micklethwait, editor-in-chief of Bloomberg editorial and research, on whether the recent collapse of crypto exchange FTX has caused any concern for Singapore - which is seen as one of the "biggest crypto centres" in the world.
Industry darling FTX filed for bankruptcy on Nov 11, leaving an estimated 1 million customers and other investors facing losses in the billions of dollars. Its fall sent ripples across the crypto world, resulting in bitcoin and other digital assets plummeting.
Even before FTX's implosion happened, Singapore had put out a consultation paper on tightening regulatory rules on crypto trading and retail investors’ access to crypto, Mr Wong pointed out..
“We plan to tighten ... We will review the rules that are necessary. But we will continue to embrace innovation around digital assets which we think has tremendous potential,” he said.
When asked if the collapse of FTX was a necessary "shake-out" of the crypto industry and a sign of the sector maturing, Mr Wong said this was “partly” the case.
"In the FTX case, there are very serious allegations that amount to potential fraud even," he said.
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Digital assets are an “important enabler” that could transform financial markets, cross-border payments, settlements and capital markets, Mr Wong said during a panel discussion at the Bloomberg New Economy Forum.
“But - and we've said this for a long time, even when people criticised us for saying (it) ... We need to take a strong stance against crypto speculation and trading, especially by retail investors,” he added.
Mr Wong, who is also Finance Minister, was responding to a question from Mr John Micklethwait, editor-in-chief of Bloomberg editorial and research, on whether the recent collapse of crypto exchange FTX has caused any concern for Singapore - which is seen as one of the "biggest crypto centres" in the world.
Industry darling FTX filed for bankruptcy on Nov 11, leaving an estimated 1 million customers and other investors facing losses in the billions of dollars. Its fall sent ripples across the crypto world, resulting in bitcoin and other digital assets plummeting.
TIGHTENING REGULATIONS
Even before FTX's implosion happened, Singapore had put out a consultation paper on tightening regulatory rules on crypto trading and retail investors’ access to crypto, Mr Wong pointed out..
“We plan to tighten ... We will review the rules that are necessary. But we will continue to embrace innovation around digital assets which we think has tremendous potential,” he said.
When asked if the collapse of FTX was a necessary "shake-out" of the crypto industry and a sign of the sector maturing, Mr Wong said this was “partly” the case.
"In the FTX case, there are very serious allegations that amount to potential fraud even," he said.
Continue reading...