The Monetary Authority of Singapore (MAS) stated that the bankrupt crypto exchange FTX does not operate in the country, Wu Blockchain reported on Nov. 14.
The Monetary Authority of Singapore (MAS) response to the FTX incident: https://t.co/VMoN0hPYvm pic.twitter.com/HizRtXXNvw
— Wu Blockchain (@WuBlockchain) November 14, 2022
The report noted that the embattled exchange was “neither licensed nor exempted from licensing in Singapore.”
It continued that the exchange could onboard Singapore users because authorities could not prevent its citizens from “directly accessing overseas service providers.”
Binance is not banned in Singapore
MAS also responded to speculations that it specifically targeted Binance with its regulatory effort, which allowed FTX to gain ground in the country.
According to the regulator, it only lists entities that may be “wrongly perceived” as being regulated on its Investor Alert List (IAL), adding that while Binance was not banned in Singapore, the exchange does not “have the requisite license to solicit customers from Singapore and had to cease doing so.”
“It would not be meaningful for MAS to list all unlicensed entities on the IAL. MAS did not have cause to list FTX on the same basis as Binance.”
Quinone and FTX are separate entities
The financial regulator further clarified that Quinone, an FTX subsidiary that operates a Singapore-based liquid exchange, is a separate legal entity in the country.
According to the authorities, Quinone is currently exempted from licensing while its license application is under review. The regulator said it is reviewing the application carefully, considering recent developments.
The watchdog further added that it had not required FTX to migrate its Singapore users to Quoine.
Quinone is one of the 134 companies affected by FTX’s bankruptcy filing on Nov. 11.
FTX is currently under strict regulatory scrutiny. Bahamas’ financial watchdog said it did not direct nor authorize FTX to prioritize local withdrawals. The exchange is also facing a U.S. Securities and Exchange Commission probe over its handling of clients’ funds.