Singapore has been one of Asia's most progressive and supportive jurisdictions for cryptocurrency. The Monetary Authority of Singapore (MAS) has been an active promoter of fintech businesses to attract investments and entrepreneurs to contribute to the country's development.
MAS has also introduced some stringent measures to regulate the crypto space and address potential risks of money laundering and terrorism financing. In 2019, MAS introduced the Payment Services Act (PSA), which defines crypto as a medium of exchange and requires crypto service providers to obtain a license from MAS. In January 2022, MAS introduced a marketing ban, which prevents crypto service providers from promoting or advertising themselves to the general public.
These measures have increased the difficulty and cost of operating in the crypto space in Singapore. As a result, some crypto service providers have opted to exit Singapore or look for other markets, such as Hong Kong, the United Arab Emirates (UAE), or the UK. As of May 2023, only 11 such companies can provide digital payment token (DPT) services under the PSA.
However, not all crypto service providers are deterred by Singapore's robust regulations. In fact, Coinut sees this as an opportunity to establish itself as a credible and trustworthy company in this industry.
Coinut believes that Singapore's regulations bring more benefits than drawbacks to the crypto ecosystem. Coinut can demonstrate professionalism and reliability to its customers and partners by complying with MAS's standards. Coinut can also attract more sophisticated institutional investors looking for a regulated and reputable platform to invest in crypto assets.
RISK DISCLOSURE: ⚠️
Digital payment token investments, such as cryptocurrencies, are not guaranteed by service providers or cryptocurrency exchanges and the government. It is crucial to exercise caution in investing, including the awareness that a part or all of the capital may be lost and may not be recovered, especially in cases of high price volatility or down market, bankruptcy, seizures and other factors. Hence, the user’s risk tolerance, investment appetite or capacity for loss should be set firstly, and they should observe safe and knowledgeable investment practices accordingly. For more information, please visit MAS' website.
IMPORTANT NOTE: 📢
Coinut.com is a financial entity regulated as a Money Services Business in Canada and an exempt entity under the Payment Services Act in Singapore. Please be reminded that cryptocurrency trading is highly risky and is not suitable for the general public. For more information, please refer to Risk Warnings and Risk Statements.