Tougher Singapore crypto regulations kick in
Photo for illustration purposes only. — AFP photo
SINGAPORE (June 30): Singapore ramped up crypto exchange regulations Monday in a bid to curb money laundering and boost market confidence after a series of high-profile scandals rattled the sector.
The city-state's central bank last month said digital token service providers (DTSPs) that served only overseas clients must have a licence to continue operations past June 30 — or close up shop.
The Monetary Authority of Singapore in a subsequent statement added that it has 'set the bar high for licensing and will generally not issue a licence' for such operations.
Singapore, a major Asian financial hub, has taken a hit to its reputation after several high-profile recent cases dented trust in the emerging crypto sector.
These included the collapse of cryptocurrency hedge fund Three Arrows Capital and Terraform Labs, which both filed for bankruptcy in 2022.
'The money laundering risks are higher in such business models and if their substantive regulated activity is outside of Singapore, the MAS is unable to effectively supervise such persons,' the central bank said, referring to firms serving solely foreign clients.
Analysts welcomed the move to tighten controls on crypto exchanges.
'With the new DTSP regime, MAS is reinforcing that financial integrity is a red line,' Chengyi Ong, head of Asia Pacific policy at crypto data group Chainalysis, told AFP.
'The goal is to insulate Singapore from the reputational risk that a crypto business based in Singapore, operating without sufficient oversight, is knowingly or unknowingly involved in illicit activity.'
Law firm Gibson, Dunn & Crutcher said in a comment on its website that the move will 'allow Singapore to be fully compliant' with the requirements of the Financial Action Task Force, the France-based global money laundering and terrorist financing watchdog.
Three Arrows Capital filed for bankruptcy in 2022 when its fortunes suffered a sharp decline after a massive sell-off of assets it had bet on as prices nosedived in crypto markets.
Its Singaporean co-founder Su Zhu was arrested at Changi Airport while trying to leave the country and jailed for four months.
A court in the British Virgin Islands later ordered a US$1.14 billion worldwide asset freeze on the company's founders.
Singapore-based Terraform Labs also saw its cryptocurrencies crash dramatically in 2022, forcing it to file for bankruptcy protection in the United States.
The collapse of the firm's TerraUSD and Luna wiped out around US$40 billion in investments and caused wider losses in the global crypto market estimated at more than US$400 billion.
South Korean Do Kwon, who co-founded Terraform in 2018, was arrested in 2023 in Montenegro and later extradited to the United States on fraud charges related to the crash.
He had been on the run after fleeing Singapore and South Korea. — AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
32 minutes ago
- The Sun
PM Anwar's first working visit to Italy from July 1-3
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim is scheduled to undertake a three-day working visit to Italy, his first to the country, according to a statement from Wisma Putra. The statement said that the visit, from July 1 to 3, is at the invitation of his counterpart, Giorgia Meloni. He will be accompanied by Foreign Minister Datuk Seri Mohamad Hasan, Transport Minister Anthony Loke Siew Fook, Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu, Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz, and Defence Minister Datuk Seri Mohamed Khaled Nordin. According to Wisma Putra, during the visit, the Prime Minister is slated to hold a bilateral meeting with Meloni at the Chigi Palace in Rome on July 3. 'This meeting provides an opportunity for both leaders to assess the progress of Malaysia-Italy relations and explore new cooperation opportunities, especially in the fields of economy, defence technology, and energy,' the statement read. Both parties will also exchange views on regional and international issues of mutual interest, including the ASEAN-Italy Development Partner Relations, ASEAN-European Union Dialogue Relations, and the situation in the Middle East. 'The Prime Minister will also outline Malaysia's priorities during its ASEAN Chairmanship in 2025 and ASEAN's efforts in addressing regional and global challenges,' it added. Wisma Putra informed that the Prime Minister is also scheduled to officiate the 'Malaysia-Italy Economic Partnership Roundtable,' which will be attended by Malaysian and Italian industry leaders to discuss cooperation opportunities in bilateral investment and trade on July 2. Additionally, Anwar is slated to attend a meeting with Muslim community leaders in Italy and a get-together with the Malaysian diaspora. The long-standing bilateral relationship between Malaysia and Italy is strong and mutually beneficial, supported by continuous growth in trade and investment, as well as people-to-people connectivity. Last year, total trade between Malaysia and Italy recorded a two percent increase to RM14.61 billion (US$3.18 billion) compared to 2023. For the period of January to May this year, total trade continued to show positive performance with a 3.3 percent increase to RM6.50 billion (US$1.48 billion) compared to the same period in 2024. Italy is Malaysia's fifth-largest trading partner among European Union countries and the third-largest importer of Malaysian palm oil from the bloc for 2024. After concluding his visit to Italy, the Prime Minister is expected to depart for France for a two-day official visit starting July 3.
Borneo Post
an hour ago
- Borneo Post
Thailand's ruling Shinawatra political dynasty faces day of legal peril
Anti-government protesters rally to demand the removal of Paetongtarn from office at Victory Monument in Bangkok on June 28, 2025. — AFP photo BANGKOK (July 1): Thailand's ruling political dynasty faces fresh legal peril Tuesday with Prime Minister Paetongtarn Shinawatra risking suspension from office by the Constitutional Court, and her ex-premier father's separate royal defamation trial due to start. The kingdom's politics have been dominated for years by a battle between the conservative, pro-military, pro-royalist elite, and the Shinawatra clan, who they consider a threat to Thailand's traditional social order. Thaksin Shinawatra, the 75-year-old family patriarch and billionaire twice elected leader in the early 2000s, is scheduled to appear in criminal court accused of breaching strict lese majeste legislation used to shield Thailand's king from criticism or abuse. The allegations stem from a 2015 interview he gave to South Korean media and could result in up to 15 years of imprisonment after a trial set to last for weeks, with a verdict not expected for at least a month after that. Meanwhile, Thailand's Constitutional Court is due to meet for the first time since a group of conservative senators lodged a case against Paetongtarn, accusing her of breaching ministerial ethics during a diplomatic spat with Cambodia. If the court decides to hear the case they could suspend her as they enter months-long deliberations, plunging Thailand into chaos as it grapples with a sputtering economy and the threat of US tariffs. 'I will let the process take its course,' a downcast Paetongtarn told reporters in Bangkok on Monday. 'If you are asking whether I am worried, I am.' The 38-year-old Paetongtarn took office less than a year ago but has been badly weakened by a scandal over her conduct in the row with neighbouring Cambodia. – Phone call scandal – A long-standing territorial dispute boiled over into cross-border clashes in May, killing one Cambodian soldier. But when Paetongtarn called Cambodian ex-leader Hun Sen to discuss the tensions, she called him 'uncle' and referred to a Thai military commander as her 'opponent', according to a leaked recording which caused widespread backlash. Conservative lawmakers accused her of kowtowing to Cambodia and undermining the military, and allege she breached constitutional provisions requiring 'evident integrity' and 'ethical standards' among ministers. Paetongtarn's Pheu Thai party has already been abandoned by a key conservative coalition partner, leaving her with a razor-thin parliamentary majority dependent on other parties. Around 10,000 people mustered in central Bangkok over the weekend to protest her administration. Her approval rating has plunged to just 9 per cent, down from around 30 per cent three months ago, according to a survey released Sunday by Bangkok university the National Institute of Development Administration. Paetongtarn's case and her father's trial are the latest round in a bitter, decades-long tussle between Thailand's powerful conservative forces, and parties linked to Thaksin. Thaksin was ousted in a coup in 2006, while his sister Yingluck Shinawatra suffered the same fate in 2014 and other prime ministers from their political movement have been sacked by court rulings. After 15 years abroad, Thaksin returned to Thailand in August 2023. He was immediately ordered to serve an eight-year jail term for historic graft and abuse of power charges, but was taken to hospital on health grounds and later pardoned by the king. — AFP The post Thailand's ruling Shinawatra political dynasty faces day of legal peril appeared first on Borneo Post Online.
The Star
an hour ago
- The Star
Finding the right fare for RTS link
SINGAPORE: A study is currently being conducted to determine the fare for the Johor Baru-Singapore Rapid Transit System Link (RTS Link) train that is expected to run every 3.6 minutes during peak hours, says Transport Minister Anthony Loke. 'We hope that with the right price mechanism in place, we can encourage more people to use the RTS Link. 'The whole idea of the project is to make a modal shift for people to use public transport to cross the Causeway,' he said at a joint press conference with his Singaporean counterpart here yesterday to unveil the first of the eight train sets that will be used for the cross-border service that is expected to commence by Jan 1, 2027. The decision on the fare will be made by RTS Operations Pte Ltd (RTSO), the joint venture company formed between Malaysia's Prasarana RTS Operations Sdn Bhd and SMRT RTS Pte Ltd to operate the RTS Link service. The 4km route from Bukit Chagar in Johor to Woodlands North in Singapore will be served by eight train sets manufactured by China Railway Rolling Stock Corporation (CRRC) Zhuzhou Locomotive Co Ltd. Singapore was represented at the event held at the Singapore Rail Testing Centre (SRTC) near Tuas by its acting Transport Minister Jeffrey Siow. Loke also said an open payment system is also expected to be introduced to provide greater convenience. 'We should have multiple modes of payment, like credit or debit cards, as well as Touch 'n Go,' he said. On the RTS Link's operating hours, Loke said the matter will be addressed closer to the opening date, though he quickly ruled out round-the-clock operations, citing the need for scheduled maintenance. Moving colours: The RTS Link four-car train set has a white livery with red and blue accents – inspired by the colours of the Malaysia, Johor and Singapore flags. — THOMAS YONG/The Star 'But we also understand that those staying in Johor travel to Singapore even before 5am for work,' he said. Meanwhile, Siow said Singapore has no plans to reduce the frequency of bus services even after the RTS Link commences. 'We want to give commuters as many opportunities as possible to take public transport,' he added. The Causeway, which sees more than 300,000 daily commuters, is currently one of the busiest border crossings in the world. In a joint statement from the two ministries, it was announced that offsite systems integration testing for the first train set is scheduled to occur at SRTC over the coming months. Trains 02, 03, 04 and 05 have been delivered to CRRC's train facility in Batu Gajah, Perak, for assembly. This process will be replicated for Trains 06, 07 and 08, where, upon completion, the train sets will be transferred to the Wadi Hana Depot in Johor Baru for further testing and final preparations before being commissioned. The four-car train set has a white livery with red and blue accents – inspired by the colours of the Malaysia, Johor and Singapore flags. Each train set, measuring 76.4m in total, can be packed with up to 1,087 passengers each to enable the RTS service to move up to 10,000 passengers per hour per direction. As of June 30, the RTS Link's system works are 56% complete. This includes trackwork, rolling stock (the trains), traction power, and the integration of signalling, communications, and control systems. Trackworks are expected to be completed by the end of this month, while the installation of the traction power supply equipment is currently in progress. Throughout July and August, key activities include the inspection, testing and commissioning of the traction power supply, including intertripping and interlocking systems. These works are essential to ensure the readiness of the power supply system to support train testing activities at Wadi Hana in September.
