Blockchain ‘paradise’ has moved from Singapore to Dubai?
After the Singapore government tightened regulations on cryptocurrencies, more and more crypto and blockchain companies are leaving the country.
April 5, Singapore passed the Financial Services and Markets (FSM) bill 2022, which requires all blockchain investors, whether serving domestic or foreign markets, to be subject to the same licensing conditions.
Tightening regulations, a series of individuals and organizations in the field of electronic money located in Singapore but operating mainly abroad will face more difficulties when they have to meet new standards if they want to continue. continue to exist and operate on this island nation.
Singapore tightens crypto-currency, investment funds leave
In response to the move of the Singapore government, Three Arrows Capital (also known as 3AC) – a hedge fund – decided to leave Singapore to move to Dubai and this “exit” was revealed by Su Zhu – the fund’s co-founder – at the conference. Crypto Bahamas proposal.
“In the past, Singapore made pro-crypto decisions, but now things have changed,” Kyle Davies, another co-founder of the fund, told the same conference.
Going back to Singapore’s FSM 2022, there aren’t any new rules to support the operation of investment funds like 3AC, despite the government’s statement. policy to create a “favorable environment for development investment activities”. Perhaps that policy is only true for domestic Singapore institutions, as the country’s monetary authority (MAS) insists that they do not allow retail investors to “dive deep” into the sector. electronic money.
Ravi Menon, Chief Executive Officer of MAS, said the agency “takes a hard line on the unbridled approach of retail investors”. However, the country still grants crypto licenses to those enterprise small but comes with extremely strict terms. This makes it difficult for funds like 3AC to deal directly with retail investors.
Before the departure of 3AC, in March 2022, DeFiance Capital – another well-known investment fund – was put on a warning list by the Singapore government, although no clear reason was given.
Will Dubai be the next blockchain paradise?
Not only tightening regulations on cryptocurrencies, Singapore has somewhat made it difficult for blockchain and cryptocurrency investors when tightening the visa process for foreign employees.
Meanwhile, Dubai takes this opportunity to welcome investors into the Dubai International Financial Center (DIFC). According to CoinDesk, the visa issuance process has been shortened and the processing time is less than a week. At the same time, DIFC has its own courts and legal system to resolve commercial as well as civil disputes.
For that reason, Dubai is considered a “new paradise” for the world blockchain.
at Blogtuan.info – Source: thanhnien.vn – Read the original article here
