MaxxDigital, a company known for its institutional services in foreign currency and risk management, will be run by SGX's MaxxTrader. The report is released as Singapore tightens rules, largely to protect small-scale investors.
Despite Tightening Regulations, New Offerings Are Emerging
When the market for digital assets is "still inefficient, still quite fragmented," Lee Beng Hong, head of FICC at SGX Group, referred to it as a "reliable, stable, robust institutional grade infrastructure."
The Monetary Authority of Singapore (MAS) also unveiled legislative measures this week that will amend current laws. The new rules significantly alter how customers can access cryptocurrency in a controlled way. The restriction on credit institutions providing services to retail consumers for cryptocurrency trading is one big development.
MAS chief Ravi Menon acknowledged that Singapore's most recent plans for retail investors may be among the "strictest in the world" and said this:
“And we think that’s necessary.”
"Regulate, Not Fear," Says the Singapore Central Bank About Cryptocurrencies
DBS Bank had already changed its retail crypto launch, scheduled for the end of 2022, on the back of Singapore's tighter rules. DBS Bank has also been of the view that central banks should manage the asset class instead of "fearing its expansion."
Despite succeeding in establishing itself as a crypto hub, the country-state risks losing its dominance to Dubai and Hong Kong.
Bloomberg reported today that Hong Kong intends to take steps toward allowing cryptocurrency trading for ordinary investors. Even if the new regulation may go into effect in March of next year, Singapore may not yet be concerned about losing potential fintech enterprises.
A MAS official had previously declared that they will "chart their own course" rather than "respond to what other countries are doing."
The head of the central bank, Ravi Menon, reaffirmed this viewpoint in an interview last week. We don't set out to compete with other jurisdictions, especially when it comes to regulation, he declared. We must act morally and take the steps required to reduce the hazards. Additionally, harm to individual investors is one of the main hazards.
Meanwhile, as Singapore’s largest bank, DBS is deep into the virtual asset sector. In Sept, it announced expanding cryptocurrency services to 300,000 of its more affluent clients in Asia. The service was launched as a self-directed crypto trading function in its banking app.
Additionally, it worked with Sandbox to create a community-focused metaverse that would promote a more enduring ecosystem.
