Due to the increased financial risks involved with the sector, Singapore’s Deputy Prime Minister Lawrence Wong has declared that the country intends to modify the regulation of cryptocurrencies. Singapore concurs to impose restrictions on cryptocurrencies.
New laws
The new rules will be imposed due to the elevated financial risks associated with the sector, according to Lawrence Wong, the country’s deputy prime minister.
Lawrence Wong stated in a talk with J. Micklethwait, the main editor and investigator editor at Bloomberg, that Singapore was already tougher on companies and participants involved in cryptocurrencies and derivatives before the FTX crash and had made clear its intention to enact regulations.
The collapse of the FTX trading service and its subsidiaries raised questions from regulators and sparked a backlash, so Micklethwait questioned Wong, who is also Singapore’s finance minister, if it resulted in a significant disruption.
The country is currently considered to be one of the world’s biggest centers for cryptocurrencies. Wong responded by saying that Singapore had already been considering fastening cryptocurrency rules before the FTX dramatic events started.
Even when people objected to what the authorities had to say, they had been discussing the new rules for a while. They must vehemently oppose cryptocurrency supposition and exchanging, particularly from marketing stakeholders.
The company managers plan, nonetheless, to carry on innovating in the field of crypto money. They think that digital assets have a lot of potential.
FTX’s knock-on effects on the cryptocurrency market
Following an eight-month period of due diligence, Temasek bought a one percent share in FTX Exchange. $175 million was deducted by the company.
A discussion about cryptocurrency regulation in Australia was also sparked by the collapse of FTX after the Australian Treasury Department declared it would be closely watching traders’ cases.
The National Treasury has declared that it will establish guidelines for cryptocurrency institutions regarding cryptocurrency volatility and transparency.
Governments are now feeling free to leave the electronic finance world with its booming growth and attempt to shield clients from finance calamities. But still, the future is unclear, and it is not yet easy to foresee what the regulators are going to do.