SINGAPORE - The implosion of cryptocurrency favourite FTX, while painful, has opened a window for improving the way Singapore handles the industry and its players. These improvements could help grow the blockchain and crypto ecosystem over the longer term.
The saga has shone the light on several issues. For instance, the regulator here is right to say that it is “not possible” to stop Singapore users from signing up with overseas cryptocurrency exchanges. One possible solution is to ring-fence local users’ assets and ensure these are backed by reserves, as suggested in the Monetary Authority of Singapore’s (MAS) consultation paper released in late October.