In the first half of 2024, Singapore’s cryptocurrency and blockchain sectors grew by 22%, reaching over US$200 million.
The MAS proposed a risk-based regulatory approach to enhance anti-money laundering and counter-financing of terrorism.
Singapore has consistently positioned itself as a forward-thinking jurisdiction, balancing innovation with robust regulatory oversight. As a fellow Singaporean, I am very proud of its future planning.
The Monetary Authority of Singapore (MAS) is seeking submissions for the Consultation Paper on the proposed regulatory approach for Digital Token Service Providers (DTSPs) under the Financial Services and Markets Act 2022.
Instead of replying to the submission directly, I will try to share my point of view openly here, offering insights, potential plans, and timelines for implementation. Before I start, I am sharing this in my personal capacity: I do not represent any self-claimed digital assets expert groups, associations, or schools.
License Application and Fee Structures
In the first half of 2024, Singapore’s fintech market saw its cryptocurrency and blockchain sectors achieve US$211.90 million across 72 deals, marking a 22% increase from US$166.30 million over 38 deals in the second half of 2023.
Singapore has been actively working on strengthening risk management frameworks for digital asset tokenization and has recently launched an initiative to expand asset tokenization within financial services.
The proposed license application processes and fee structures are crucial elements that will shape the DTSP landscape in Singapore. From my perspective, MAS should consider implementing a tiered approach to both timelines and fees, reflecting the diversity of DTSPs in terms of size, complexity, and risk profile.
For timelines, I propose a three-tier system:
Fast-track (60 days): For small, low-risk DTSPs with straightforward business models.
Standard (90 days): For medium-sized DTSPs or those with moderately complex operations.
Extended (120+ days): For large, complex DTSPs or those proposing novel business models.
This tiered approach would allow MAS to allocate resources efficiently while ensuring thorough vetting of more complex applications. The fee structures can follow a similar tiered system based on the DTSP’s annual revenue or transaction volume could be implemented.
Minimum Financial Requirements
The proposed minimum financial requirements are a critical safeguard against potential market disruptions and consumer losses. Based on my analysis, I believe a risk-based approach to setting these requirements is more feasible. This could involve:
Base Capital Requirement: A minimum base capital for all DTSPs, regardless of size or services offered.
Risk-Weighted Capital Requirement: Additional capital requirements based on the DTSP’s types of services offered, transaction volumes, and risk profile.
Liquidity Requirement: A minimum liquidity ratio to ensure DTSPs can meet short-term obligations.
Specifically, providers with capital ratios above 15% were 30% less likely to face operational disruptions during periods of extreme market stress. I propose that MAS consider setting the base capital requirement at SGD 250,000, with additional risk-weighted requirements that could increase this amount up to SGD 5 million for the largest and most complex DTSPs.
Audit Requirements
The proposed duties of CEOs, directors, and partners, along with audit requirements, are fundamental to ensuring good governance and accountability in the DTSP sector. The following enhancement is recommended for consideration:
Mandatory Training: Annual training programs for CEOs and directors on regulatory compliance, risk management, and emerging trends in digital assets.
Risk Committee: DTSPs above a certain size must establish a dedicated risk committee at the board level.
Independent Directors: Mandating a minimum number of independent directors based on the DTSP’s size and complexity.
Audit Frequency: Annual external audits for all DTSPs, with additional quarterly internal audits for larger providers.
Regulators are increasingly leveraging technological solutions to enhance their supervisory functions and manage vast amounts of data. Consequently, firms must engage more frequently with regulators regarding fintech and regtech developments.
Fintech companies that implement robust governance structures and conduct regular audits are indeed less likely to experience compliance breaches.
AML/CFT Measures
The measures proposed in parts 5–8 of the consultation paper, particularly those related to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), are crucial for maintaining the integrity of Singapore’s financial system. I propose the following enhancements:
Risk-Based Approach: Implement a tiered KYC/AML approach based on transaction volumes and risk profiles.
Technology Integration: Encourage the use of AI and machine learning for transaction monitoring and suspicious activity detection.
Regulatory Technology (RegTech) Sandbox: Establish a sandbox environment for DTSPs to test innovative compliance solutions.
For existing customers onboarded prior to licensing, I suggest a phased approach:
Phase 1 (0–6 months): Risk assessment of existing customer base
Phase 2 (6–12 months): Enhanced due diligence for high-risk customers
Phase 3 (12–18 months): Full compliance with new requirements for all customers
Correspondent Account Services
The proposed requirements for Correspondent Account Services and information sharing for law enforcement purposes are essential components of a comprehensive regulatory framework. Perhaps the following would help:
Standardized Data Format: Develop a standardized data format for information sharing across the industry.
Blockchain Analytics: Encourage the use of blockchain analytics tools to enhance transaction traceability.
Secure Information Sharing Platform: Establish a secure, centralized platform for information sharing between DTSPs and law enforcement agencies.
Blockchain analytics tools have been instrumental in recovering stolen or illicitly obtained digital assets worldwide. They allow law enforcement agencies to trace and identify suspicious cryptocurrency transactions on the blockchain, leading to asset recovery efforts.
Technology Risk Management
The draft notices FSM-N28 to FSM-N33 cover critical aspects of DTSP operations, including technology risk management, cyber hygiene, and conduct. Based on my observations, I propose the following:
Continuous Monitoring: Implement real-time monitoring systems for cyber threats and operational risks.
Incident Response Drills: Mandate regular incident response drills and simulations.
Third-Party Risk Management: Establish clear guidelines for managing risks associated with third-party service providers.
Consumer Education: Require DTSPs to allocate resources for ongoing consumer education initiatives.
Regarding operating hours, perhaps MAS can consider a flexible approach that allows for 24/7 operations while ensuring adequate risk management and customer support. This could involve:
Core operating hours (e.g., 9 AM to 5 PM SGT) with full support services
Extended hours with automated systems and on-call support
Scheduled maintenance windows during low-volume periods
Timeline for Implementation:
To ensure a smooth transition to the new regulatory framework, I propose the following timeline:
Month 0–3: Publication of final regulations and guidelines
Month 3–6: Industry consultation and feedback period
Month 6–9: Finalization of technical specifications and reporting formats
Month 9–12: DTSP preparation and system upgrades
Month 12–18: Phased implementation of new requirements
Month 18–24: Full compliance deadline for all DTSPs
This timeline allows for a gradual implementation, giving DTSPs sufficient time to adapt their systems and processes while ensuring that the regulatory framework is fully operational within two years.
With careful implementation and continuous refinement, this regulatory framework has the potential to cement Singapore’s position as a global leader in digital asset regulation, attracting innovative businesses while safeguarding the interests of consumers and the broader financial system.
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”.
There’s always a new term or trend flying around in crypto. Since it’s our goal to be the kindergarten of crypto, you can trust us to explain it to you in the easiest way possible. So what’s the new rave in town? It’s cbBTC
Now, cbBTC is a form of wrapped Bitcoin proposed by Coinbase. What are wrapped Bitcoins (WBTC)? Wrapped Bitcoin is a version of Bitcoin that’s compatible with Ethereum’s blockchain. It’s like a digital cover that allows Bitcoin to be used in Ethereum-based apps.
So, Coinbase, the second-biggest crypto exchange, recently talked about releasing its own wrapped Bitcoin called cbBTC. There’s a lot of excitement about this. And some people think this could even be a huge win for DeFi and investors at large.
What’s the background?
Coinbase sold the idea of cbBTC in a tweet it shared on X on August 13. The exchange posted a ticker of the new cbBTC, along with the message “coming soon.” Jesse Pollak, who runs Base, also shared a post about Base’s plans to build a strong Bitcoin economy on Base.
So, Coinbase is taking advantage of the drama around wrapped Bitcoin to launch its version. Wrapped Bitcoin is currently in muddy waters over its planned restructure. BitGo, the company behind WBTC, plans to transfer control of WBTC to a joint venture with BiT Global and Justin Sun.
Sun is the guy behind Tron, and to most people, he is controversial. BitGo’s restructuring plans aren’t liked by the crypto community. For one, it involves moving the custody of the Bitcoin underlying WBTC outside the U.S. Also, some people are concerned about the lack of transparency in this new venture.
MakerDAO, one of the top DeFi platforms, is also considering whether to stop new DAI minting backed by WBTC in its Maker and SparkLend protocols. This means lots of instability for WBTC. We’ve seen other Sun-associated projects, like TrueUSD, get into trouble. That means the uncertainty around WBTC leaves room for Coinbase’s new cbBTC token. It could emerge as a better alternative for people interested in wrapped Bitcoin.
Why’s this a big deal for DeFi and crypto?
Coinbase’s cbBTC has already sparked massive excitement in crypto. Although there are no details yet, you can tell that it’s going to be massive. By expanding its tokenized asset offerings, Coinbase could reshape how we think about wrapped Bitcoin, especially as demand for tokenized Bitcoin on Ethereum-compatible chains continues to grow. And with its ownership of the Base layer 2 chain, onboarding people into DeFi will be easier than ever before.
Think about it: Coinbase already made waves with cbETH, a wrapped Ethereum token that launched in August 2022. With around 210,000 cbETH in circulation, it’s been a hit. So, if cbBTC follows in cbETH’s footsteps, we could see a major shift in the market.
Lots of crypto executives and thought leaders have positive expectations for cbBTC. Anndy Lian, a blockchain expert, believes cbBTC could offer a more transparent alternative to WBTC. Rena Shah, COO of Trust Machines, sees cbBTC as a huge opportunity for Bitcoin DeFi (BTCFi).
Shah believes that Coinbase’s massive user base alone could bring a significant number of new users to Bitcoin DeFi. And with recent interest in BTCFi, especially after the launch of the Runes protocol, the timing couldn’t be better.
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”.
GALA, the native cryptocurrency of the Gala Games ecosystem, has been on a roller coaster ride as of late.
The token has gained more than 12% over the past day amid the broader rally among gaming coins. It has also seen its value soar by more than 60% over the past week and 200% over the past month, according to data from CoinMarketCap.
In a note to Techopedia, Anndy Lian, Intergovernmental Blockchain Expert, said:
“The recent surge in GALA’s price can be attributed to a combination of factors, including partnership announcements and growing investor interest in the GameFi sector.”
With a market cap of $2.2 billion as of March 11, 2024, GALA is currently the 56th largest cryptocurrency by market value. It has a circulating supply of 29,309,794,963 coins and a 24-hour trading volume of $1.7 billion.
Where’s next for GALA? Is the latest rally sustainable? Learn in our GALA price analysis.
Key Takeaways
GALA has seen a significant surge, gaining over 200% in the past month.
The rally is attributed to several factors, including the resurgence in the crypto market.
Recent developments, including the economic system of a new game called Last Expedition, have sparked further interest in GALA.
Other gaming tokens have also surged alongside GALA, including PIXEL and RON.
Gala Gains Renewed Interest Amid Market Resurgence
Founded in 2019 by Eric Schiermeyer (a co-founder of Zynga) and other industry veterans, Gala Games leverages blockchain technology to facilitate the creation, distribution, and trade of non-fungible tokens (NFTs), enabling players to own unique in-game assets such as characters, equipment, and land.
The platform offers a variety of games spanning different genres, with notable titles including “Town Star” and “Mirandus.” These games are designed to be play-to-earn, allowing players to potentially earn rewards through skilled gameplay or contributions to the ecosystem.
After explosive growth during the 2021 bull run, the platform faced significant challenges, largely attributed to a mix of technical vulnerabilities and the waning interest in GameFi.
A notable incident was an issue with a bridge malfunction, which allowed an attacker to mint over $2 billion worth of GALA tokens.
The incident involved a vulnerability within the multi-chain routing protocol provided by pNetwork, which supports Gala Games, among other DeFi organizations.
Additionally, as the initial excitement around blockchain gaming and NFTs began to stabilize, platforms like Gala Games faced challenges in maintaining the explosive growth experienced in their early days.
Nevertheless, the GameFi project has once again picked up momentum amid the recent market resurgence. With Bitcoin hitting a new all-time high, GALA has also been on a roll, gaining more than 200% over the past month alone.
Why Is GALA Surging?
GALA’s recent surge can be largely attributed to the announcement detailing the economic system of a new blockchain-based game called Last Expedition.
The game features a rich narrative on the alien planet Aura, where players, as hunters, gather valuable resources and tech while facing deadly creatures. It uses in-game currencies as a reward system, which could be swapped for other currencies, including GALA. The announcement read:
“Thanks to the power of GalaChain, a variety of in-game currencies with different purposes will be used to provide an immersive player experience with nearly infinite combinations and strategic choices.”
In-game currencies and Notarium, a key resource, can be earned and used for various upgrades and crafting, adding depth to the gameplay. This intricate economic model, combined with strategic gameplay elements, likely contributes to increased interest and investment in GALA.
Gala has been vigorously pursuing other development initiatives as well. The platform has launched its GalaSwap decentralized exchange (DEX) on the GalaChain network and sponsored a $1 million hackathon at the Game Developers Conference.
Anndy Lian commented:
“Their partnership with AWS Game Tech and Alienware is one of the highlights. This increased GALA’s brand visibility for the token in the global gaming arena, and its connection with the big brands brought more credibility. The growing price of GALA has also brought many GameFi users back to the market.”
Positive sentiment across the crypto space, driven by institutional interest and increasing adoption, has benefited altcoins, including GALA.
Furthermore, GALA’s tokenomics include mechanisms such as token burning, where a portion of the transaction fees collected in GALA is burned, effectively reducing the overall supply over time.
This deflationary measure can contribute to the token’s price appreciation as the circulating supply decreases.
Gaming Tokens Surge as Bitcoin Hits $70,000
Aside from GALA, other prominent gaming tokens and metaverse coins also experienced a significant surge in value over the weekend. This surge occurred concurrently with Bitcoin briefly surpassing the $70,000 mark.
One of the tokens experiencing significant gains includes PIXEL, the crypto farming game, and its associated network, Ethereum scaler Ronin. PIXEL reached a new all-time high price above $0.94 overnight, with growing interest reflected in over 500,000 daily active users.
Ronin’s RON token also hit a more than two-year high of $4.05 before slightly dipping to $3.70. Yield Guild Games’ YGG token, announced as PIXEL’s guilds infrastructure partner, saw a 64% increase in value this week.
Moreover, NFT card battler Parallel’s PRIME token reached a new all-time high of $19.78, while BEAM, the token of the Beam gaming network, set a record high of $0.044. Immutable’s IMX, the largest gaming token by market cap, spiked to a two-year high of $3.62.
Tokens such as Axie Infinity’s AXS and Iluvium’s ILV also experienced notable gains.
These gaming token surges often outperformed Bitcoin, which briefly exceeded $70,000 on Sunday, following its historic breach of that price point on Friday. Bitcoin’s current value sits just below $69,500, representing an 11% increase over the past week.
So, will the price of GALA continue moving up? Anndy Lian has a positive view. He said:
“When I spoke to my community on the ground, they said that the price action got their attention, and they are promoting the token non-stop on X. In the last few days, I have seen a big increase in trading volume by close to 110%, amounting to around $1.4B in the last 24 hours. The increased volume means that the buying interest is very high. If you look at CMC on the addresses by time held, I see that the number now is 69.28% vs. 52.14% 1 year ago. This also means that more people are more confident about the token now.”
Giving his short-term GALA price outlook, Lian predicted:
“Maybe consider holding it [GALA] for a longer period. If this situation continues, I believe a 5% to 15% price hike in the next week is also possible.”
The Bottom Line
The remarkable surge in GALA’s value, alongside the broader rally in gaming tokens, comes amid a renewed interest in blockchain gaming and NFTs.
GALA has emerged as the biggest winner in the recent gaming and metaverse coin surge, with the price jumping more than 200% over the past week.
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”.