could be reigning Singapore crypto market for a while; Here’s why

Sahana Kiran
Source – Unsplash

The crypto-verse started as a decentralized industry free from the ties of centralized systems. However, with a complete 180 flip, the crypto sphere was forced to include regulators. From seeking approval to function to hoping there wouldn’t be a ban on the market, the crypto industry continues to succumb to regulators across the globe. Like every other government, the Singapore government rolled out regulations and made the whole licensing process more stringent. Now, the Monetary Authority of Singapore’s [MAS] chief fintech officer, Sopnendu Mohanty, decided to share his thoughts on the crypto market.

Speaking to Financial Times, Mohanty suggested that regulators from Singapore would have no tolerance for bad behavior in the market. He said,

“We have no tolerance for any market bad behavior. If somebody has done a bad thing, we are brutal and unrelentingly hard.”

Mohanty’s comment is likely directed at the collapse of Terra. The dramatic downfall of LUNA and UST caused immense damage to investors. Stories of how LUNA investors were suicidal and broke caused commotion in the market and even urged regulators to probe the network. In addition, prominent Singapore-based hedge fund Three Arrows Capital incurred notable losses that gave rise to liquidation. With the hedge fund enduring issues regarding its finances, Mohanty’s latest comment could also be at par with this.

Furthermore, the crypto industry was formulated to bring financial freedom to the commoner. However, regulators, including Mohanty, view the market as a private sector. He suggested that the ongoing market conditions were the outcome of the community exploring “private currency.”

Singapore and its “painfully slow” licensing process

Earlier yesterday, prominent crypto exchange, managed to get a regulatory nod from MAS. It was revealed that out of 196 applications, only 14 managed to get an in-principle approval. A whopping 108 remain pending, while 74 applications were withdrawn. These numbers highlight how stringent the process of licensing is.

Further elaborating on the same, Mohanty said that MAS wouldn’t be giving out licenses very quickly to crypto firms. MAS reportedly has a “painfully slow” and “extremely draconian due diligence process” of licensing, particularly for crypto platforms.

With this, the community speculated that could be the only legal exchange in the region for a while. The regulator’s harsh take on crypto could be due to failing projects and the onset of many projects despite this.