25 April, 2024

Singapore’s Deputy PM Says the Country Is ‘Not Open to Crypto Speculation at All’

18 Nov, 2022

22 Nov, 2023

According to Lawrence Wong, Singapore’s finance minister and deputy prime minister, the collapse of the crypto exchange FTX has “very serious allegations that amount to potential fraud.”

Mr Wong was responding to a question from Mr John Micklethwait, editor-in-chief of Bloomberg editorial and research, about whether the recent collapse of crypto exchange FTX has caused any concern for Singapore, which is a prominent crypto hub.

Lawrence Wong stated that the country is not open to crypto speculation at all. The recent crypto market developments reinforced the city-state’s position that they were “on the right track” in focusing on digital asset innovation while also taking a strong stance against crypto speculation and trading by retail investors.

Mr Wong described digital assets as an “important enabler” that has the potential to transform financial markets, cross-border payments, settlements, and capital markets.

Singapore is currently tightening regulations governing retail cryptocurrency investment, after years of trying to attract the investors.

The MAS’s managing director, Ravi Menon, stated last week at Singapore’s fintech festival that the city-state does not want to be a hub for trading and speculation in the asset class. 

The central bank has proposed prohibiting retail investors from borrowing to invest in cryptocurrencies and requiring crypto exchanges to ensure that prospective buyers understand the risks.

We plan to tighten … We will review the rules that are necessary. But we will continue to embrace innovation around digital assets which we think has tremendous potential,

Mr Wong said. 

Last week, cryptocurrency exchange FTX declared bankruptcy after losing trust in its accounting for billions of dollars in assets. Its demise sent shockwaves through the crypto world, causing bitcoin and other digital assets to plummet.

The company’s advisers, who oversee Sam Bankman-FTX Fried’s Group carcasses, are currently struggling to locate the company’s cash and crypto, citing poor internal controls and record keeping.

Temasek Holdings, a Singapore state investor, has revealed that it will write down the value of its entire $275 million investment in FTX.



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