Why is the Ethereum co-founder dissatisfied with the Singapore regulators? An Ethereum co-founder said the move to block crypto trading could undermine Singa pore’s plans to become a crypto haven.
Ahead of the crypto winter of 2022, Singapor regulators continue to keep a close eye on the country’s crypto industry. However, Ethereum co-founder Vitalik Buterin criticized the country’s regulator.
In a new interview with the Strait Times, Buterin said that Singapor’s ambition to become a crypto haven may not work because of its skeptical approach to digital assets.
He added: “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.”
Amidst the collapse of Singapore-based firm Terra Labs earlier this year, Singapore is putting more emphasis on regulating crypto in the country. In order to reduce the risks associated with the volatility of the crypto market, Singapore has decided to restrict the access of retail investors to crypto trading. This includes banning retail investors from buying coins and restricting them from borrowing and lending money. Last month, the central bank – the Monetary Authority of Singapor (MAS) – also proposed a new regulatory framework. Singapore regulators have said they are fine with having stablecoins.
Crypto leaders share concerns about Singapore law
Vitalik Buterin is not alone in expressing concern about Singapore’s legal system. Earlier this month, the CEO of Coinbase Global Inc. Brian Armstrong said that Singapre’s plan to ban crypto trading is not “inconsistent” with its desire to become a leading source of cryptocurrency. website 3.
As Singapor closes its regulatory controls on crypto, Hong Kong is back in the game. Hong Kong is looking to re-establish itself as a crypto business hub. If so, we may see a shift of crypto traders from Singapore to Hong Kong. Asian crypto trading companies are popular in countries with crypto-friendly regulations. However, the crypto winter of 2022 has put regulators on their toes.
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