The co-founder of Ethereum warned that Singapore's plans to develop into a global centre for cryptocurrencies could be derailed by the move to limit retail cryptocurrency trading.
Singapore's regulatory bodies have been monitoring the country's crypto industry more closely as a result of the crypto winter of 2022. However, Vitalik Buterin, co-founder of Ethereum, has criticized the nation's regulator.
Buterin says that Singapore's desire to become a crypto hub may not succeed due to its skepticism towards digital assets. And he said:
The city-state’s 'willingness' to make a distinction between blockchain usage and cryptocurrency is like one of those weird things. The reality is if you don’t have cryptocurrency, blockchains that you’re going to have are just fake and nobody’s going to care about them.”
Singapore is concentrating more on crypto rules after the early-year demise of the Singapore-based Terra Labs. Singapore has opted to limit the access of regular investors to cryptocurrency trading in order to lower the risks associated with the market's volatility.
This includes prohibiting small investors from financing coin purchases and limiting their access to borrowing and lending opportunities. A new set of regulatory measures were also proposed by Singapore's central bank, the Monetary Authority of Singapore (MAS), last month. Singapore's regulatory authorities have stated that stablecoins are acceptable.
Leaders in the Crypto Space are Worried About Singapore's Regulations
Not only Vitalik Buterin has expressed alarm about Singapore's regulatory policies. Brian Armstrong, the CEO of Coinbase Global Inc., stated earlier this month that Singapore's proposal to limit retail crypto trading is "incompatible" with its ambition to become the center of the Web 3 industry.
Hong Kong is back in the game as Singapore tightens its regulatory controls on cryptocurrencies. Hong Kong wants to reinvent itself as the center of the cryptocurrency market. If true, we might be seeing a shift in the number of cryptocurrency dealers moving from Singapore to Hong Kong.
With countries possessing crypto-friendly policies, Asia's cryptocurrency trading market is rather well-known. The crypto winter of 2022, though, has authorities on guard.