In September, Binance, one of the world’s largest cryptocurrency exchanges by trading volume, ceased operations in Singapore.
As Binance failed to apply for a license under local law, the Monetary Authority of Singapore (MAS) added Binance.com to the investor alert list, which tells consumers that Binance is not licensed or regulated locally.
It is no secret that the crypto market is experiencing a massive wave of regulation lately.
Some may argue that regulation hinders innovation and control over their own finances, but it’s important to understand that there are in fact some major benefits associated with Singapore’s current regulatory climate.
Singapore’s government has been known for being quite friendly towards cryptocurrencies, but they have also been taking measures to protect their citizens from potential scams or frauds that could result from any sort of unregulated currencies.
If it’s a matter of taking a balanced approach, the only way you can be sure you are getting it wrong is by banning them entirely.
Financial authorities, such as those in China, have been all too quick to ban elements of crypto, going as far as closing down crypto exchanges and blocking access to crypto websites. The country seems bent on halting all digital currency trading activities by its citizens, even though it is one of the largest markets for Bitcoin.
China’s cryptocurrency ban has experts touting Singapore as the next Asian leader in the digital assets space.
Due to Singapore’s strong ecosystem and community, many entities are applying for licences to provide digital payment token services or ancillary support services under the Payment Services Act.
Singapore recently granted licenses to the brokerage arm of DBS Bank Ltd. and Australian cryptocurrency exchange Independent Reserve to offer digital payment token services, building on the city-state’s status as a crypto hub.
Regulation when done correctly can lead to crypto development in a healthy way, by improving standards and preventing illicit activity.
With Singapore’s approach to cryptocurrency regulation, we have created an environment that promotes innovation, while securing frameworks for security and stability.
Moving forward
As the number of start-ups in Singapore rises, its mainstream financial institutions also gain a better understanding of the technology, as global blockchain businesses set up shop in the city-state.
At the same time, demand for cryptocurrency security in Singapore is expected to see a mammoth growth over the next few years. The main reason behind this trend towards digital currencies in Singapore is the emerging opportunities in the blockchain sector.
The demand for crypto security services also stems from the increasing number of cyberattacks on businesses and individuals, who are now looking at ways to protect their assets from these attacks.
To protect the security of your digital assets, it is essential that you use the best tools on the market. This includes using a combination of hardware and software to create an effective security ecosystem.
As such, the UKISS Ecosystem is created to empower individuals with full control of their digital assets. Learn more in our whitepaper here.
UKISS Technology takes pride in being part of a supportive tech ecosystem where innovations and creativity are fostered and spurred on!
