Singapore Is More Cautious In Crypto After The LUNA/UST And 3AC Scandals

Once known as the “crypto paradise”, Singapore will tightly control and directly punish bad practices in the crypto-currency sector.

Speaking to the Financial Times on 23 June, Sopnendu Mohanty, director of the Singapore Monetary Authority’s (Mas) Fintech division, insisted that the country would “not tolerate” “severely and without hesitation” sanctions for fraudulent practices in the crypto-currency sector.

Mohanty’s above statement is widely regarded as the first official speech of the ruling class in Singapore following the “unanticipated” events of the past months with Terraform Labs (TFL) and Three Arrows Capital (3AC).

In particular, TFL is the owner of the LUNA/UST duo (LUNC/USTC today). The 3AC “whale” is one of the names that has “dropped money” extremely strongly for LUNA – which is said to be the source of the storm leading to default, massive liquidation of stETH margin loans, and the drag of the market.

Both companies have had time to be based in Singapore. In April 2022, 3AC moved its headquarters to Dubai because of “legal pressures.”

Sharing the current crypto market situation, Mohanty commented that the reason for the recession is that the world has not paid enough attention to managing private currencies.

At the same time, he announced that Singapore would continue to manage crypto-currencies strictly. The review process will be thorough and rigorous for companies seeking a license to operate in this area.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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