Crypto companies consider Singapore as not so crypto-friendly country anymore as they started to realize the difficulty of legally operating in the region according to a Nikkei Asia report that we have in our latest crypto news today.
According to the figures released by the Singaporean regulators, more than 100 of 170 crypto companies that applied for licensing were turned down or decided to withdraw their applications. Operating under exemptions, many companies face an uncertain future. Singapore’s introduction of the licensing regime at the start of the year will put forward as the next step in building the crypto sector and providing equal opportunities for everyone. While the Monetary Authority of Singapore supports Innovation in the use of blockchain technology that includes crypto and recognized the risks involved with it. One spokesperson noted why crypto companies consider the country as not crypto-friendly.
“Cryptocurrencies could be abused for money laundering, terrorism financing or proliferation financing due to the speed and cross-border nature of the transactions. Digital payment token service providers in Singapore … have to comply with requirements to mitigate such risks, including the need to carry out proper customer due diligence, conduct regular account reviews, and monitor and report suspicious transactions.”
After Binance’s withdrawal of bourse application from MAS to stop providing services in the city-state as the company’s only affiliate announced a week ago that it is shutting down the trading platform for the region by next February. According to the scenario, after Binance’s exit from Singapore, most other companies will confront a similar fate in the near term. While Dubai-based crypto exchange Bitxmi is one of the 103 companies which appear on the latest MAS list of entities that have exemptions that allow them to operate and they were canceled.
According to Nikkei Asia, it set up Bitxmi in Singapore in late 2018 and was unsuccessful in securing a license as the CEO Sanjay Jain said:
“We can’t operate in Singapore. We have an office there, but it’s just more or less – there’s one person for our accounting and legal issues.”
Before the introduction of the licensing regime, the companies that operated in Singapore got exemptions until the outcome of their license application is known. There were more than 90 crypto companies that operate under these exemptions as Senior Minister Tharman Shanmugaratnam said. Until now, only DBS Vickers Securities which is a branch of the DBS Group Holdings, and Fomo PAY were listed on the MAS website as licensed entities.