MAS announces action plan against Binance and FTX. MAS took action against Binance instead of FTX. When Binance shut down in Singapore, all users switched to FTX.
The Monetary Authority of Singapore (MAS), which oversees the crypto industry, has defended its action against Binance, rather than banning the crypto platform FTX. The central bank also warned that cryptocurrencies are highly volatile, with many losing all their value. And, on November 21, the central bank of the country issued a press release addressing some of the problems and errors that arose in the context of the FTX disaster.
Singapore Regulator against crypto exchange
MAS revealed that their first mistake was that it was possible to save local workers and those entering FTX. This is not possible because FTX is not licensed by MAS and operates from shore. Singapore Regulators took action against Binance instead of FTX. They are first in the Alert list of the central bank (IAL), while others are not. The organizer said that both companies are licensed; The difference between the two is that FTX sued customers in Singapore, while FTX did not. Between January and August 2021, MAS received a few complaints about Binance.
Following the M.A.S move, the Securities and Exchange Commission launched an investigation into Binance for violations of the Payment Services Act (PS Act). There is no reason to include FTX in IAL because there is no evidence of violation of the PS rules. And Binance warned a few months ago that it would shut down those services, and when Binance shut down, all users switched to FTX.
MAS warned that
“Crypto exchanges can and do fail. Even if a crypto exchange is licensed in Singapore, it will be regulated to address money-laundering threats, not to protect investors.”
After FTX stopped, Temasek from Singapore canceled its $275 investment in the crypto company. Singapore has tried to reduce the risk for crypto investors by implementing strict regulations.