Monetary Authority of Singapore releases details of high-profile actions against errant crypto firms


  • The Monetary Authority of Singapore issued its fourth enforcement report early on Tuesday, detailing actions taken against errant firms. 
  • The report outlines MAS’ actions against the hedge fund Three Arrows Capital that invests in DeFi and cryptocurrency.
  • MAS report reveals Singapore’s assistance in the US CFTC’s investigation into Binance and Phemex.

Singapore’s central bank, Monetary Authority of Singapore (MAS), has issued its fourth enforcement report, outlining actions taken against firms like Three Arrows Capital, which did not have a management framework to identify, monitor and address cryptocurrency and digital asset investment risks.

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MAS discloses enforcement actions against crypto firms

Singapore’s MAS released its enforcement report earlier today, on September 19, 2023. This is a key development for crypto market participants as the central bank took action against Three Arrows Capital (TAC), a hedge fund that invests in and manages digital assets, and DeFi.

In its report, MAS shared three actions by the executives and the firm that violated the law. TAC failed to notify the central bank of the employment of a representative who managed the fund on behalf of the firm. TAC lacked a framework to tackle virtual asset investment-related risks and in June 2022, the central bank reprimanded the firm for furnishing false information to MAS.

In light of these facts, the Singaporean central bank took high-profile enforcement actions against TAC directors and banned them from performing any regulated activity and from taking part in the management, acting as a director or becoming a substantial shareholder of any capital markets services firm, effective September 13, 2023.

Singapore aided US CFTC’s investigation into Binance

In its fourth enforcement report, MAS explains how it assisted the US Commodity Futures Trading Commission (CFTC) in its investigation into Binance and Phemex, two cryptocurrency and derivatives trading platforms.

Bitcoin, altcoins, stablecoins FAQs

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

What are altcoins?

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

What are stablecoins?

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

What is Bitcoin Dominance?

Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.


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