February 21st, 2022

Singapore Tightens Regulatory Grip on Crypto

Singapore has long been praised for being a forward-thinking, progressive jurisdiction that supports technology and innovation. This has enticed a horde of cryptocurrency and blockchain startups to set up shop in the nation, lured by its seemingly openness to the industry. However, these companies are now facing roadblocks and finding it rather challenging to operate in the city-state.

Just a couple of weeks ago, operators of crypto ATMs were forced to shut down their machines after the Monetary Authority of Singapore (MAS) outlawed cash-to-crypto terminals. The move is part of a wider crackdown on advertising cryptocurrencies to the general public, which MAS believes shouldn’t be encouraged to engage in the trading of digital assets.

New guidelines were issued on January 17, 2022 prohibiting cryptocurrency trading service providers from promoting their services to the general public, specifically calling out ATMs for providing such access and convenience that “may mislead the public to trade in digital payment tokens (DPTs) on impulse, without considering convenient access may mislead the public to trade in the risks of trading in DPTs.”

“DPT service providers should not provide physical ATMs in public areas in Singapore to facilitate public access to their DPT services,” the guidelines say.

Crypto service providers may promote their services on their own corporate website, mobile applications or official social media accounts but mustn’t trivialize the risks of trading digital assets, the document reads.

These companies shouldn’t promote their DPT services in public areas in Singapore or through any other media directed at the general public in Singapore, and shouldn’t engage third parties to advertise their services, it says.

The move is the latest setback for Singapore’s crypto industry in which many are struggling to secure crypto exchange or DPT licenses.

So far, MAS has only granted three licenses out of around 170 companies that applied. Over a hundred have withdrawn their applications or been rejected and at least one has received “in-principle approval.”

Companies that were operating in the country prior to the introduction of the licensing regime were granted exemptions until the outcome of their application is known.

Crypto startups turn to Dubai

Last year, Binance Asia Services, the Singapore entity of crypto exchange Binance, withdrew its application for a cryptocurrency exchange license in the city-state after spending a year trying to win regulators’ approval.

The company, which shut down its operations in Singapore earlier this month, has instead decided to move to Dubai after signing a deal with the Dubai World Trade Centre Authority (DWTCA) to build a new international virtual assets hub.

According to Anndy Lian, chairman of BigOne Exchange, a crypto exchange headquartered in the Netherlands, crypto companies started exiting the city-state six months ago, opting instead for locations such as Dubai and Europe to base their companies.

“The trend is obvious. Businesses are moving away,” Lian told Tech in Asia earlier this month. “Singapore is openly welcoming everybody, then openly rejecting almost everybody.”

The United Arab Emirates (UAE) has over 40 multidisciplinary free trade zones, among them the DWTCA. These areas have their own special tax, customs and import regimes, and are designed to attract foreign investment.

Several of the UAE’s free zones have been actively working towards establishing themselves into leading crypto and blockchain hubs, with some having already started issuing permits for virtual asset services providers.

So far, the Dubai Multi Commodities Centre (DMCC) has licensed 22, the Abu Dhabi Global Market has six, and the Dubai Silicon Oasis Authority has at least one, according to a government report seen by Bloomberg. Dubai International Financial Centre, meanwhile, has none for now.

DMCC Free Zone

A blog post released on January 25, 2022 by crypto gaming company Quantum Works details how the DMCC has wooed the startup into moving to Dubai from the UK, highlighting the burgeoning crypto community there.

“DMCC has partnered with CV VC (Crypto-Valley Venture Capital) and CV Labs to launch the crypto center we now call home,” the company wrote.

“While most of the free world is spending time trying to figure out how to legislate crypto, … Dubai is ahead of the global curve when it comes to crypto taxes and legislation.

“There are over 20,000 companies in this blockchain network that we now have access to. Companies like Binance see the same opportunity here as us.”

At the federal level, the government is working on a crypto licensing regime which it hopes will help bring in some of the world’s biggest crypto companies, a government official told Bloomberg earlier this week.

The Securities and Commodities Authority is currently in the final stage of amending legislation to allow virtual asset services providers to set up. The first federal licenses are expected to be issued by the end of Q1 2022.

Original Source: https://fintechnews.sg/59341/blockchain/singapore-tightens-regulatory-grip-on-crypto/

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

February 17th, 2022

RBI should hold debates, discussions before any crypto decision: Experts + Anndy Lian’s additional comments

Additional comments that I have given to the editors:

In a big country like India there are many conflicts of interest. Banning cryptocurrencies is not the way forward. It could be an easy way out for now. I would encourage them to need to find a way to embrace it and build a different and hopefully better future with this form of currency.

If they understand cryptocurrencies well enough, they will know that regulating a basket of crypto that can be almost 100 percent traceable is not difficult. In fact, it allows you to reduce and avoid macroeconomic instability from their legacy systems.

Education and awareness is the key to moving forward. Investors, in general, must know what they are investing in and be cautioned at all stages when dealing with cryptocurrencies.

– Anndy Lian

RBI should hold debates, discussions before any crypto decision: Experts

Reserve Bank of India (RBI) has been a stringent critic of crypto assets, reiterating its tough stand on the new age asset class.

Deputy governor T Rabi Sankar called for an outright ban on private cryptocurrencies at the IBA Banking Technology Awards. He claimed the notorious early 20th century Ponzi schemes were better than investing cryptos.

Prior to this, RBI governor Shaktikanta Das said that private cryptos are a serious threat to macroeconomic and financial stability, and investors should keep risks in mind as such assets have no underlying value whatsoever, ‘not even a tulip’.

The harsh remarks from the central bank has vexed the crypto industry. They suggested the RBI hold debates and discussions at various forums before making a final conclusion.

Rahat Beri, Founder and CEO, Acryptoverse, a crypto advisory firm said that cryptos are a budding technology and an asset class that should have the freedom to be explored with guardrails. “Otherwise we risk being left behind.”

“Stablecoins are backed by currency, assets or other projects. We have seen success right in our own backyards,” she added. Cryptos come with multiple challenges and these must be addressed, experts said. Authorities should move in the direction of debate, assessment and deliberation over such assets.

RBI has always been an active critic of crypto assets and vocal advocate to put a blanket ban on the private crypto assets. Proliferation of such currencies will undermine the rupee, they said.

Repulsing from RBI’s opinion, market experts said that banning cryptocurrencies is not the right way forward, rather the easiest way out for now.

In a country like India, there are many conflicts of interest, said Anndy Lian, Chairman, BigONE Exchange. “The central bank should find a way to embrace it and build a different and hopefully better future with this form of currency,” he added.

Change is never accepted easily, said Beri. “A decade ago, no one gave online payments much of a chance and today the common man uses it. A nascent technology comes with inherent challenges.”

In the union budget 2022, Finance Minister Nirmala Sitharama announced that the gains arising from the transactions in the private crypto assets will be taxed at a flat rate of 30 per cent, with no exemption or deduction.

The loss arising from the sale of any virtual assets cannot be set off against any other income. TDS at the rate of 1 per cent would be levied on payments made on transfer of digital assets.

The move was welcomed by the crypto players, particularly the exchanges. Reading between the lines, they expected a positive regulatory framework to the new age asset class. However, after RBI comments, the dreams appear to be shattered.

The crypto companies may also hold back on their expansion plans just because there are no clear instructions from the government, said the crypto experts.

Jay Hao, CEO of OKX said that it’s important for the regulators of a country to be on the same page to form the crypto policy framework. He believes that India needs clear guidelines for the continued growth of the crypto ecosystem.

“Multiple statements from officials may create confusion in the minds of investors which could be harmful for the users,” Hao added.

“The lack of clarity on regulations also discourages foreign institutional investors from investing in the sector.”

Original Source: https://economictimes.indiatimes.com/markets/cryptocurrency/rbi-should-hold-debates-discussions-before-any-crypto-decision-experts/articleshow/89616737.cms

Anndy Lian

www.anndy.com

j j j

February 11th, 2022

Crypto community high on hopes after positive signals from India, Russia govts

My Additional comments:

1. After the initial green signals from India and Russia, what is next for Crypto Industry?

With the green lights from India and Russia, we are seeing an increase in Bitcoin’s spot volume in the last 24 hours on BigONE Exchange. The pricing of BTC has also increased by more than 2.5%. A huge country like Russia that embraces crypto is positive news for the whole world. We have seen more retail investors in the communities starting to feel comfortable and bullish. This is especially so in the meme coins’ communities. Still, I want to caution all that the bullish shift could be short term as it still appears negative in the charts for the longer term. With India and Russia taking their stand on crypto, I will do many other countries taking reference from them and following their footsteps. Some of the other countries that I am giving advice on are also more receptive after two big countries accepted cryptocurrencies.

2. Do you think that different regulations around the globe will help the industry or the world should come as one?

The world would not and should not come as one as it is not feasible for most nations. Cryptocurrencies are seen as bridges between worlds and the new regulations in place will serve as a financial connector between countries. This could also mean that cryptocurrencies would be further scrutinized, monitored and monitored. Those who see decentralisation as removing control and governance will not be happy with regulations. While those who really want crypto to grow will see the acceptance by the regulators as a sign of further disruptions.

3. What would be the key concerns of industry, post regulations?

There will be a lot of changes post regulations. We will see the real issues when the countries start to implement and allow crypto into their system fully. I hope the other countries can use Singapore’s sandbox model for instance to simulate the possible scenarios before going into full-scale implementation. There should be awareness programs in the country to tell new users what is crypto, the ups and downsides of investing in crypto and other taxations issues too. The education process will empower users to make better decisions, hence fewer headaches for the regulators.

Crypto community high on hopes after positive signals from India, Russia govts

Synopsis

Crypto industry at large is positive on the announcement and believes that the governments across the world are stepping ahead to take a big awaited call in the digital assets

After Russia’s intentions to regulate crypto, players in India and across the globe are high on hopes over the new-age asset class.

They are expecting that two major nations – India and Russia – have stepped ahead for the legitimisation of the crypto assets, and more major economies may join the forces soon.

However, India has made it clear that the legitimate or illegitimate are separate questions and the government is simply taxing the gains from the crypto transactions, which is its sovereign right.

On the other hand, the Putin government is eyeing crypto regulations, bucking the recommendation from its central bank to ban the mining and trading of the private digital tokens.

Crypto industry at large is positive on the announcement and believes that the governments across the world are stepping ahead to take a big awaited call in the digital assets.

Anndy Lian, Chairman, BigONE Exchange said that a country like Russia embracing crypto is positive news for the whole world. More retail investors in the communities are starting to feel comfortable and bullish, especially on memecoins.

“With India and Russia taking their stand on crypto, many other countries may take reference from them and follow in their footsteps,” he added.

Sathvik Vishwanath, Co-Founder and CEO, of Unocoin said that it will be a matter of time before more and more countries start looking at the crypto industry in a positive way.

The ones who had shied away from cryptos in the past are changing their perspectives and Russia is one of them, he added. “On the other side India has taken the wait and watch policy, but is not opening up with its views.”

Crypto fanatics, who see decentralisation as removing control and governance, will not be happy with regulations put across by the authorities across the globe.

Dileep Seinberg, Founder and CEO, Thinkchain said that every nation is likely to have its own cryptocurrency, with a potential to build a crypto-economy globally.

However, the industry players do not believe that the world should join the force and come as one to regulate the crypto assets uniformly. They do not see this as a viable option.

Cryptocurrencies are seen as bridges between worlds and the new regulations in place will serve as a financial connector between countries, said the experts.

The world would not and should not come as one as it is not feasible for most nations, said Lian of BigONE. “This could also mean that cryptocurrencies would be further scrutinized, monitored and monitored.”

It would be an unrealistic home for specific guidelines to be applicable for the entire world as one. At the tech level there definitely is uniformity irrespective of which country it is working in.

“The taxation, regulations, and enforcement differ which needs to be handled by the governments within the country,” said,” Vishwanath of Unocoin.

Once the regulations are out in different parts of the world, there will be a lot of changes through. However, experts said that governments, authorities and regulators should primarily focus on education and awareness about the asset class.

“We will see the real issues when the countries start to implement and allow crypto into their system fully,” Lian said. “I hope the other countries can use Singapore’s sandbox model for instance to simulate the possible scenarios before going into full-scale implementation.”

“Most important industry concerns would not come from technology but to see if few companies can monopolies like any other industry in the world,” said Sienberg. “This might damage the very fabric of the decentralised crypto world.”