Thursday, July 25, 2024

How Singapore became a safe haven for crypto groups amid global crackdown

While so many countries are cracking down on different cryptocurrencies, Singapore is on the way to becoming a safe haven for cryptocurrencies. The island nation has become a hotspot for crypto groups because of its license exemptions and warmer regulations. One of the most popular groups that have offices in the country is the largest crypto exchange in the world by trading volume, Binance.

There are several countries in the world where the government is camping down on the exchange. There have also been concerns of some unregulated activities with the potential of being used for terrorist funding and money laundering. Countries like the US, Canada, the EU, Japan, and Thailand are either probing or working on taking some action against the cryptocurrency exchange, Binance. In fact, in June, the UK banned the exchange. There are regulations storming over the industry in most parts of the world. This is why crypto players such as Binance consider Singapore as the center of opportunities.

For operating in Singapore, crypto groups need a license. However, the Monetary Authority of Singapore offers license exemptions while the companies are still waiting for the applications to get finalized. However, MAS has not approved any applications from crypto groups since the concept was introduced in the Payment Services Act of 2020. More than 300 crypto groups have applied for the license, many of whom are operating in Singapore.

Blockchain Association of Singapore’s Chair, Chia, Hock Lai, said that the reason why Singapore is such a hit among crypto firms is the simple regulatory process they offer. In Singapore, cryptocurrencies are not considered to be legal tender yet. Instead, they are considered goods that can be exchanged.

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