The Monetary Authority of Singapore (MAS) has come out to assure residents and the media world that the now-bankrupt FTX Derivatives Exchange was not operating in the country prior to its collapse.
“The Monetary Authority of Singapore (MAS) said today, in response to media queries, that FTX.com does not operate in Singapore,” it said in an email statement, which added: “FTX.com is neither licensed nor exempted from licensing in Singapore.”
The clarification of the MAS aligns with its tag as one of the most proactive regions in the world for digital currencies. The fact that FTX does not operate on its shores underscores its robust due diligence and further highlights its strong regulations for players in the nascent ecosystem.
The regulator, however, said that it was unable to prevent its masses from trading with overseas entities and that some might have been onboarded by FTX.
The regulator also talked about the speculations that it banned FTX and Binance from operating in the country, thus giving users a clear line to patronize them.
“Binance was not banned from operating in Singapore,” it said, adding: “Binance did not have the requisite license to solicit customers from Singapore and had to cease doing so. It would not be meaningful for MAS to list all unlicensed entities on the IAL. MAS did not have cause to list FTX on the same basis as Binance. “
MAS and Defunct Crypto Firms
MAS is fond of addressing media misconceptions about crypto companies that are assumed to be based in Singapore but are not. Earlier in the year, the watchdog came out to debunk the claims that Terraform labs and Three Arrows Capital (3AC) were entities that operated out of Singapore.
Besides Vauld Group which is known to be licensed to operate and is currently undergoing bankruptcy proceedings, other firms have more complicated affiliations. In reality, some of these entities have had an affiliation with the country, but have at a point in their history moved offshore to areas they presumed had more regulatory leniency.
The FTX bankruptcy has yet again shown that the industry is in its infancy and the lack of comprehensive regulation has, and will continue to put all investors at risk from companies generally failing to adhere to standard ethical practices in their operations.