Binance Faces Examination In Singapore Following The Collapse Of FTX
The collapse of FTX crypto exchange is brewing several reactions both within and outside the crypto industry, such as the recent probe on Binance. First, from the sudden meltdown of the firm, an insolvency contagion erupted among several exchange investors. Now, more bankrupt companies increased.
Some regulators have opened investigations into the collapse of FTX. The shocking revelations surrounding the operations of the collapsed platform now serve as the reason for more regulatory controls. In addition, some watchdogs have extended their probe to other crypto exchanges operating within their region.
Singapore Police Force Investigates Binance
In a recent report, the world’s largest crypto exchange Binance is facing a new probe in Singapore. The financial crime investigation unit of the Singapore Police Force handles the investigation.
Before, some people expressed doubts regarding the treatment Binance received in Singapore. They believe the country offers preferential treatment to Binance compared to FTX.
The collapse of FTX started with a drama with Binance. The latter announced its decision to liquidate all its holdings of FTX Token (FTT). Following its announcement, FTT started plummeting and has never recovered since then.
Binance Probe Linked To A Breach Of Rules On Local Payment Services
As per the report, the probe is over an alleged breach of rules on local payment services. The Monetary Authority of Singapore revealed that the investigation spiked as the country’s financial regulator shifted the case to the crime unit of the Police Force. The police stated that they would withhold all pending comments until they complete the investigation.
This probe from the Singapore police is compounding the struggles for Binance as the exchange is also under investigation in the US. The latter is trying to ascertain if Binance broke some securities rules in the country.
Last year, the exchange’s Singapore affiliate withdrew its application to operate as a crypto exchange. This was some months after Binance made it a part of the alert list of the MAS.
While commenting through an email, a Binance spokesperson confirmed strict compliance of the exchange to Singaporean laws. Also, the spokesperson noted that the exchange would not comment on the probe due to its confidential roles.
Several investor ventures of the collapsed FTX exchange have declared massive losses on the platform. While many state the amount of exposure and the possibility of writing it off, some are quiet.
Some affected firms with the FTX contagion include Galaxy Digital, Genesis, Sequoia Capital, BlockFi, and Galois Capital. Moreover, Crypto experts believe that the train will get longer.
Featured image from Pixabay, chart from TradingView.comOhNoCryptocurrency via https://www.ohnocrypto.com/ @Sarah, @Khareem Sudlow