Source of article: The Strait Times

Writing Credits: Claire Huang

I applaud the initiative by the MAS to underscore the risks for retail investors who impetuously engage in crypto trading and speculation without a proper understanding of the intrinsic exposure. Retail investors can easily lose their life savings when the music stops. This was what happened when a wave of implosions occurred globally in the crypto industry in the middle of this year beginning with the Luna-Terra saga.

The proposals by the MAS are however territorially specific to Singapore DT operators who are regulated by the MAS, or who operate within Singapore. This space is globally borderless. Effective policing and enforcement is the $64 million question. Regulators in the major financial markets need to establish uniformity of rules and procedures to collaborate, cooperate, and develop a workable framework to coordinate and facilitate global enforcement. Members of IOSCO could perhaps work towards establishing such a framework. Otherwise, the anonymity and borderless nature of the crypto world could easily allow rogue operators to exploit regulatory arbitrage to bypass the rules and regulations in a jurisdiction that are perceived to be too restrictive and stringent.

I shared my views with the Singapore Straits Times in the attached story authored by Ms Claire Huang.

My original LinkedIn post is here.