Singapore increased the regulations for crypto exchange on Monday to increase money laundering and trust in the market after a series of top-class scandals had touched the sector.
The central bank of the city state said last month that digital token service providers (DTSPS) who only served customers in overseas have a license to continue operating after June 30th.
In a subsequent explanation, the monetary authority of Singapore added that it had “highly determined the measurement lise for the licensing and generally does not spend any license for such operations.
Singapore, a large Asian financial center, has one blow after several top-class cases after several top-class cases that were bowed to the aspiring crypto sector.
This included the collapse of the cryptocurrency hedge fund of three arrows from Capital and Terraform Labs, both of which were filed for bankruptcy in 2022.
“The risks of money laundering are higher in such business models and if their content -regulated activity is outside of Singapore, the MAS is unable to effectively monitor such people,” said the central bank and referred to companies that only serve foreign customers.
Analysts welcomed the move to set the control of the crypto exchange.
“With the new DSP regime, MAS is increasing that financial integrity is a red line,” Chengyi Ong, head of the Asian -Pacific guideline at the Krypto data group chain, told AFP.
“The goal is to isolate Singapore out of the reputation risk that a Singapore, which is sufficiently or unknowingly, is involved in illegal activities.”
The Gibson law firm, Dunn & Crutcher, said in a comment on her website that the move “Singapore would be able to be completely compliant with the requirements of the Financial Action Task Force, the global money laundering and terrorist financing guards based in France.
Three Arrows Capital registered bankruptcy in 2022 when his assets were severely decline after a massive sale of assets, which it terminated in the cryptoma markets.
Singapore co-founder Su Zhu was arrested at Changi Airport while trying to leave the country and detained for four months.
A court on the British Virgin Islands later ordered a global asset of 1.14 billion US dollars for the founders of the company.
In the Terraform laboratories based in Singapore, his cryptocurrencies also dropped dramatically in 2022 and forced them to submit insolvency protection in the USA.
The company’s collapse of the company and Luna of the company deleted around $ 40 billion in investments and, an estimated more than 400 billion US dollars led to greater losses in the global crypto market.
The South Korean Do Kwon, which was Terraform in 2018, was arrested in Montenegro in 2023 and later delivered to the United States due to the crash.
He had been on the run after escaping in Singapore and South Korea.
