The co-founder of Ethereum explains why he is unhappy with Singapore’s regulatory approach
The crypto winter of 2022 has seen Singapore’s regulatory authorities be more vigilant about the country’s crypto sector. Buterin, the co-founder of Ethereum, has criticised the country’s regulator.
Buterin stated that Singapore’s ambitions to become a crypto-hub may not be possible due to its skeptical approach to digital assets. He said:
The city-state’s “willingness” to distinguish between cryptocurrency and blockchain usage is like one of those strange things. The truth is that if you don’t have cryptocurrency, the blockchains you do have are fake and nobody will care about them.
After the collapse of Terra Labs, a Singapore-based company that was founded in 2012, Singapore has been putting more emphasis on crypto regulations. Singapore has restricted crypto trading to retail investors to reduce volatility in the crypto market.
This includes excluding small investors from purchasing fund coins and limiting their borrowing and lending. The Monetary Authority of Singapore (MAS), a central bank, also proposed a new set of regulatory steps last month. Singapore’s regulatory authorities said they were okay with stablecoins.
Crypto Leaders Share Concerns About Singapore’s Regulations
Vitalik Buterin isn’t the only one to express concern over Singapore’s regulatory measures. Brian Armstrong, Coinbase Global Inc.’s Chief Economist, stated earlier this month that Singapore’s proposal of limiting retail crypto trading was not compatible with its desire to be the hub for the Web 3 sector.
Hong Kong is back in crypto trading, despite Singapore’s increasing regulatory control. Hong Kong is aiming to be the crypto trading hub. We could see a shift in crypto traders from Singapore to Hong Kong.
With countries that have crypto-friendly regulations, Asia’s crypto trading market is very popular. Regulators are now alert to the crypto winter 2022.
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