The case of FTX continues to make waves throughout the industry, sending wake-up calls to regulators and politicians alike. Those who oppose digital currencies have found a new reason to continue to oppose this new technology. On the contrary, those who support it are skeptical of their decisions after seeing billions of dollars lost in this disastrous event.
The bulk of FTX’s influence has been absorbed by customers based in the West, but that hasn’t stopped other countries from rethinking their approach to crypto regulations. The island nation of Singapore now wants to expand regulations that effectively limit cryptocurrency trading and speculation.
Controversial stance against cryptocurrency bolstered by the collapse of FTX
Lawrence Wong, Deputy Prime Minister and Minister of Finance of Singapore, weighed in on the turmoil caused by FTX’s fraudulent business practices. In an interview with bloombergWong cited this unfortunate incident as part of the reason for cementing the island nation’s strong position against private investors who speculate and trade cryptocurrency. He said,
“And we’ve said this for a long time, even as people criticized us for saying it, that we need to take a strong stand against speculation and trading in cryptocurrencies, especially by retail investors.”
Minister Wong explained that Singapore is open to digital and digital asset innovation, but cryptocurrency speculation is where the country lays the line. The Minister agreed on the potential of blockchain technology to revolutionize cross-border payments, financial and capital markets, etc. However, exposing private investors to cryptocurrency speculation has been considered risky for some time now.
Minister Wong revealed that Singapore was looking to tighten regulations around cryptocurrency trading and retail access to this market before the FTX story unfolded. An ongoing consultation paper for the same. You will review the rules and regulations of the industry.
The Singapore government lost $275 million on FTX
Between October 2021 and January 2022, Singapore-based Temasek Holdings Limited invested $210 million in FTX International and $65 million in FTX US for a 1% and 1.5% stake, respectively.
On November 17th Subject againA state-backed investment agency, revealed that it will reduce that $275 million investment in FTX to zero.