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CNA
11 hours ago
- Business
- CNA
CNA Explains: Singapore's tightened crypto licensing rules – 'closing the door' or 'raising the bar'?
SINGAPORE: The Monetary Authority of Singapore (MAS) has moved to tighten its regulation of unlicensed cryptocurrency firms operating in the country. Digital token service providers based in Singapore that only serve overseas markets will need to be licensed by Jun 30 – or they'll have to suspend or cease their unregulated activities here. Why is MAS doing this? Experts told CNA the authority was closing a loophole in the industry. 'It's a step towards consistency,' said intergovernmental blockchain advisor Anndy Lian, adding that ensuring digital token service providers meet the same standards could bolster trust. Prior to the regulation, providers targeting overseas markets could sidestep licensing requirements and exploit 'lighter oversight' while operating from Singapore, he noted. 'This move levels the playing field and likely reflects pressure to align with global anti-money laundering efforts,' said Mr Lian. Mr Adrian Ang, a partner at Allen & Gledhill's financial services department, added that it was necessary to support standards set by the global money laundering and terrorist financing watchdog, the Financial Action Task Force. 'Without regulation, the anonymity, speed and cross-border nature of their activities make this sector highly vulnerable to criminal abuse,' he said. How will firms be affected? As of Jun 19, MAS has granted digital payment token licences to 33 institutions, including major players like Coinbase and OKX. While unlicensed digital payment token services can still apply for a local license, MAS has said that it has 'set the bar high' and will 'generally not issue" one. Bitget and Bybit are among the top ten exchange operators by volume that do not have a Singapore licence. A Bloomberg report said Bitget will relocate staff to jurisdictions such as Dubai and Hong Kong, and that Bybit has plans to follow suit. But experts pointed out that it is the smaller firms that will feel the heat. While larger firms have in-house legal and compliance departments and experience in dealing with licensing frameworks, smaller and mid-sized players face an 'uphill task,' said Mr Mike Chiam, a fintech lawyer at Foxtail LLC. 'Many of them relied on operating from Singapore under a 'non-retail, overseas-only' assumption. That assumption no longer holds,' he said. For these firms – which include unlicensed crypto exchanges, over-the-counter brokers and decentralised finance projects targeting overseas markets – compliance costs, legal restructuring or a complete shutdown are on the table, he added. Mr Lian, who knows of many small firms trying to shift out of Singapore since early June, agreed that added compliance costs and processes weigh heavily on these. 'I've seen startups struggle with similar red tape elsewhere, and it risks pushing innovation to less regulated regions if not handled carefully,' he said. What about employees? Mr Chiam said a common question he's had to deal with relates to whether employees whose job scope involves dealing with digital tokens must relocate. Based on his law firm's understanding from employees' enquiries, it has found that such workers are generally not affected by MAS' stricter rules, he said. Practically speaking, employees working for digital token firms do not have to relocate - or at least, that is not the legislative intention, Mr Chiam added. 'On a positive note, employees appear to be interested in knowing how to better comply with regulations and keep abreast of such updates – overall a heightened awareness of the regulatory stance,' he said. An employee from MEXC, who requested anonymity, observed that other centralised exchanges have introduced additional know your customer (KYC) checks and anti-money laundering (AML) frameworks. These policies verify customers' identities, to prevent illicit activity and to comply with global regulations. Although MEXC does not have a local licence, the employee said his colleagues in Singapore have not been significantly affected. 'There are some observed changes within the compliance and legal teams, but for the most part, it is still business as usual,' he said. An employee from Bitget, who also requested anonymity, claimed that about ten members of the customer service team were laid off earlier in June. What does it mean for the industry here? Ms Angela Ang, who heads Asia Pacific's policy and strategic partnerships at blockchain intelligence company TRM Labs, said that while Singapore's approach to crypto may not resonate with everyone, it has been 'very consistent'. 'Firms that are not operating this specific kind of business model should not be unduly alarmed. Crypto businesses can still obtain licences here if they are prepared to have a substantive presence, including servicing Singapore customers,' said Ms Ang. She added that the industry has had 'significant runway' to make preparations since the Financial Services and Markets Act was passed in April 2022. In a media release on Jun 6, MAS also said its position has been 'consistently communicated' for a few years since its first response to public consultation issued in February 2022. It added that based on available information, it was aware of a 'very small number' of providers affected. Allen & Gledhill's Mr Ang agreed that most crypto firms here should have already undertaken licensing considerations prior to commencing their business, as licensing requirements have been 'in force for many years.' Ultimately, the move should not be misread as Singapore turning hostile to digital assets, Mr Chiam said. 'Instead, the law is making it clear: If your fintech wants to use Singapore's framework and reputation, you must meet Singapore's standards,' he said. 'In that sense, Singapore isn't closing the door – it's raising the bar."
Yahoo
21-04-2025
- Business
- Yahoo
Dogecoin Holders Mark 4/20 ‘Dogeday' as SEC Reviews ETF Applications
Dogecoin holders marked April 20 as 'Dogeday,' a community-driven celebration that started in 2021 and coincides with International Weed Day. The date has become an annual event for the Dogecoin community, which has maintained its presence in the cryptocurrency market despite criticism over its lack of utility and inflationary structure. Currently valued at $23.3 billion, Dogecoin ranks as the eighth-largest cryptocurrency by market capitalization. It adds roughly 14.4 million new coins into circulation each day, resulting in a daily inflation of over $2.16 million. That amounts to an annual addition of around 5 billion coins. These tokenomics have drawn criticism but also appear to contribute to the coin's retail appeal by keeping prices relatively low, often under $1. Anndy Lian, a blockchain expert, says Dogecoin's popularity is supported by community enthusiasm, low entry barriers, and speculative interest. He explained that the coin's inflationary supply keeps it accessible for everyday investors and that its meme-driven identity resonates with a younger, internet-focused demographic. The coin's appeal remains mostly rooted in online culture, with little underlying blockchain utility. Meme coins like Dogecoin typically rise in popularity due to social media engagement and hype. In November 2024, Dogecoin briefly surpassed Porsche in market capitalization, following a series of public endorsements from Elon Musk, further fueling retail interest. As Dogeday celebrations took place, attention within the Dogecoin community also turned to the status of four pending exchange-traded fund (ETF) applications related to DOGE. These include proposals from Bitwise, Grayscale, 21Shares, and the Osprey Fund. Both Bitwise and Grayscale's Dogecoin ETF applications are under SEC review, with final decisions due by October 2025 Applications from 21Shares and Osprey are still in early stages, awaiting movement on their initial 19b-4 filings. No specific decision dates have been announced for either of those proposals. While the future of DOGE ETFs remains uncertain, Dogecoin's market presence continues to be shaped by its online community, speculative appeal, and visibility in broader conversations about crypto investment products. As the SEC's deadlines approach, the outcome of these ETF applications is being closely watched by both investors and industry observers.
