Summary
- The Monetary Authority of Singapore (MAS) said crypto-asset trading is not suitable for the general public and urged consumers to act cautiously.
- MAS said Binance is not licensed to provide regulated financial services in Singapore and was added to its Investor Alert List in September 2021.
- MAS said it requires licensed firms to maintain controls for technology and cyber risk management and customer asset protection, but such measures cannot completely prevent losses caused by the inherently high risks of crypto assets.
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The Monetary Authority of Singapore warned of the risks of crypto-asset trading in the wake of the Binance hack, saying that even when consumers use licensed firms, safeguards cannot fully prevent losses stemming from the inherent risks of crypto assets.
Lianhe Zaobao reported on November 5 that, in response to questions about the Binance hack, an MAS spokesperson said “crypto-asset trading is not suitable for the general public” and that “consumers should exercise caution and should not deal with unregulated entities.”
MAS also reiterated that Binance is not licensed to provide regulated financial services in Singapore. Binance was placed on the regulator’s Investor Alert List in September 2021, a move aimed at warning consumers that they could mistakenly believe the exchange was licensed or supervised by MAS.
On licensed firms, MAS said it requires “strict control frameworks for technology and cyber risk management and for safeguarding customer assets.” Even so, those regulatory measures cannot completely prevent consumer losses tied to the inherently high risks of crypto assets.
Doohyun Hwang
