forex forum binary options trade - Forex - Singapore’s MAS: FTX Not Licensed, Protection of Local Users Impossible
  • Welcome to forex forum binary options trade. Please login or sign up.

Singapore’s MAS: FTX Not Licensed, Protection of Local Users Impossible

Started by forex4you, Nov 23, 2022, 05:27 am

Previous topic - Next topic

0 Members and 1 Guest are viewing this topic.


Singapore's MAS: FTX Not Licensed, Protection of Local Users Impossible

<p class="MsoNormal text-align-justify">The Monetary Authority of Singapore (MAS) has clarified that it was not possible for the central bank to protect local users of the services of the beleaguered cryptocurrency exchange, FTX, as the business was not licensed to provide virtual asset services in the country. </p><p class="MsoNormal">"A first misconception is that it was possible to protect local users who dealt with FTX, such as by ringfencing their assets or ensuring that FTX backed its assets with reserves. MAS cannot do this as FTX is not licensed by MAS and operates offshore," MAS explained in a press statement released on Monday.</p><p class="MsoNormal">The financial regulatory authority also faulted the belief that Singaporean investors' assets in FTX could have been protected if they were domiciled in the crypto exchange's local subsidiary, Quoine Pte Limited. MAS dismissed this, adding that "Quoine, like other overseas subsidiaries of FTX, has been included in the US bankruptcy proceedings and has halted withdrawals." </p><p class="MsoNormal">The regulator's comment comes on the heel of <a href="">the collapse</a> of the once-beloved FTX whose fall was precipitated by <a href="">a liquidity crisis</a> and <a href="">its failed attempt for a bail-out</a>, forcing it to <a href="" target="_blank">file for bankruptcy</a> in the United States. </p><p class="MsoNormal">FTX's Debts</p><p class="MsoNormal">A number of developments have marked the fallout of FTX so far. Last Thursday, John Ray III, the new CEO of FTX, described the running of the FTX Group under Sam Bankman-Fried, the Co-Founder and former CEO, as <a href="">"a complete failure</a> of corporate controls." This is even as <a href="" target="_blank">over $600 million was drained</a> from FTX's wallets hours after the crypto exchange filed for bankruptcy.</p><p class="MsoNormal">In the latest, a bankruptcy document filed over the weekend shows that FTX, once <a href="" target="_blank">the fast-growing crypto exchange</a>, owes $3.1 billion to its top 50 unsecured creditors, with the largest and second-largest creditors owed over $226 million and $203 million, respectively. On top of that, an earlier bankruptcy filing suggests that the exchange, which was valued at $34 billion at its last funding round, may have over 1 million creditors.  </p><blockquote class="twitter-tweet"><p dir="ltr" lang="en">FTX's top 50 creditors are collectively owed more than $3 billion. All names on the document are redacted. <a href=""></a></p>-- Kyle Chassé (@kyle_chasse) <a href="">November 21, 2022</a></blockquote><p class="MsoNormal">Following FTX's collapse, several venture capital firms, such as Singapore's Temasek, Soft Bank's Vision Fund and Sequoia Capital, have been <a href="" target="_blank">writing off millions of dollars</a> of their investments in FTX. </p><p class="MsoNormal">According to reports, FTX under Bankman-Fried lent out billions of its customer funds to corporate sibling Alameda Research for leveraged crypto trades. This resulted in its fall when FTX ran into a bank run and 'liquidity crunch' after the crypto exchange's close-knit balance sheet with Alameda Research became public knowledge.</p>

This article was written by Solomon Oladipupo at

Source: Singapore's MAS: FTX Not Licensed, Protection of Local Users Impossible
Forex4you offers wide range of trading accounts with DDE, NDDE and STP executions including more than 100 instruments. Forex4you is based on MetaTrader 4 trading platform. Clients have the advantage of daily technical and fundamental analysis, one-click trading, economic calendar, mobile trading applications, news and forecasts from Dow Jones (UK) and signals from Trading Central (US). In addition, Forex4you offers Forex dictionary, educational materials and lot of "How to" guides about Forex. Forex  beginners-guide-to-iq-option-complete-review forex4you review forex4you Forex4you Review - One of the Best Forex Brokers Forex4you Review - One of the Best Forex Brokers forex4you - PAMM forex broker review and feedback from traders  Affiliate programs  Forex4you Affiliate programs