In general, global regulators have taken different policy positions in response to the massive advertising budgets and promotional influence of the crypto industry.
In Australia, the marketing of cryptocurrencies falls under the restrictions imposed by the Competition and Consumer Act 2010. ASIC also has powers delegated by the Australian Competition and Consumer Commission to act against deceptive or misleading behavior, according to lawyers Gilbert & To throw.
In January 2022, the UK forced advertisers to clearly disclose that cryptocurrencies are unregulated in the UK, profits may be subject to capital gains tax, and the value investments can go down and up.
The United States allows crypto advertising with little regulation, and confusion reigns among various enforcers as to whether crypto should be classified as a security, a commodity, or a currency.
By contrast, Dubai in the United Arab Emirates has openly courted the industry with tax breaks, fast-track licensing and lavish parties. Almost every square inch of its international airport displays crypto advertising.
However, critics question Dubai’s reputation for financial probity as governments struggle to strike a balance between preventing money laundering and managing innovation.
In an October article, MAS acknowledges that while it cannot ban cryptocurrencies in Singapore, it strongly discourages consumers from buying them and proposes that licensed exchanges limit consumer access based on minimal financial knowledge or sophistication.
He also proposes to force exchanges to disallow the use of credit or leverage and to properly segregate client assets under a custody system.
However, the elimination of counterparty risk will not protect clients against the market risk of assets in custody falling to zero.
FTX’s history wipe did little to dispel the argument that crypto speculation is primarily for broke people trying to get rich.
Speculative altcoins like Solana, Cardano, Dogecoin, and Shiba Inu are now down 90% from all-time highs and many FTX clients are experiencing 100% losses on their holdings.
Elsewhere, other major exchanges like Crypto.com are under pressure after Binance crypto boss Changpeng Zhao took to Twitter on Nov. 13 to warn customers to “stay away” from certain exchanges.
Crypto.com’s proprietary Cronos token has plunged 26% in just over 24 hours since the warning, amid online rumors prompting panicked customers to redeem funds in the wake of FTX’s collapse.
In response to falling confidence in the industry, Binance, Crypto.com, OKX and Deribit have have undertaken to prove that they hold sufficient reserves to meet their debts.
Singapore’s decision to all but ban private cryptocurrencies from the public sphere hasn’t stopped it from moving forward with plans to allow what it defines as pegged stablecoins. unique (SCS).
“Issuers of SCS must hold reserve assets of cash, cash equivalents or short-term sovereign debt securities at least equivalent to 100% of the nominal value of the outstanding SCS in circulation, and these assets must be denominated in the same currency as the indexed currency. Audit and reserve segregation requirements, and timely redemption at face value will also apply,” he said.
Singapore banks will be permitted to issue SCSs under the proposals without additional qualification and with equivalent prudential requirements applicable to the token form of bank liabilities given existing capital and liquidity frameworks.
The Southeast Asian nation that has historically used strict regulation as a competitive edge for its financial services industry could once again be ahead of the competition.