Launched in 2009, cryptocurrency is a digital payment system. It allows users to undertake payments on the internet. Crypto tokens make use of blockchain philosophy and decentralized finance. Using blockchain technology, each user’s transactions are broken down into individual blocks. In simple terms, these blocks are simplified ledger that stores user transactions. The blocks are then stored as chains in the public network. Decentralized finance allows users to complete user transactions without involving banks. There are no regulatory authorities or central banks involved to complete user transactions. It also becomes difficult to liquidate such holdings to traditional currencies. Golden Profit is a trading platform that allows users to trade in many different cryptocurrencies, including Bitcoin.
Considering the growing interest in crypto tokens, many countries have been studying it. The US has set up a steering committee to monitor crypto tokens. The bill that was passed in March 2022 aims to provide a safe investment environment. Crypto tokens and investment models will come under the direct radar of regulatory authorities. The Central African Republic also took similar steps. The country has gone ahead and legalized Bitcoin in the country. The authorities have enabled a digital wallet. This will allow users to undertake easier transactions using cryptos.
Understanding crypto investments in Singapore
In a short span, Singapore emerged as a crypto-friendly country. It has become a major financial hub enabling easier transactions and crypto investments. Going back to history, in 2021, Singapore was ranked as the top crypto-friendly country. It allowed for a robust and positive investment economy. The legislation was made crypto-friendly thereby attracting huge investments. The price of Bitcoin and Ethereum was trading at an all-time high during this period. The country also encouraged its residents to adopt crypto’s investments.
Consumer Protection Law
But, did Singapore just blindly take this leap? The answer is a No. the Monetary Authority of Singapore had developed strict laws and regulations on crypto. There have been a lot of efforts undertaken by the government to ensure fair crypto investment.
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In January 2020, the Singapore government introduced the payment services act. The act works primarily to mitigate investment through anti-money laundering. The law is also flexible and provides proper regulation on the payment model. The payment schemes and service providers were covered through this act. The act establishes various regulatory requirements to undertake payment services in the country. In 2017, the Singapore government developed plans to streamline initial coin offerings. The MAS introduced a guide that serves as the principle on how ICO can be handled in Singapore. Crypto companies and exchanges need to follow this strict guideline to undertake investments.
According to a recent survey, more than 45% of Singapore residents hold crypto investments. This figure is bound to increase in the coming year due to widespread adoption.
Dealing with the market crash
In 2022, the crypto market faced a huge price slash. The prices of all crypto tokens plunged in the global market. Popular tokens including Bitcoin, Ethereum, and Polka have been performing low. The prices seem to be fluctuating without giving hope of recovery. The price of Bitcoin has reached an all-time low of $19k per token. It is also predicted that the price may be low to $10k per token.
Considering the desperate market, the Singapore government has taken efforts to cut losses.
Singapore, which was once a hub for global seminars and workshops is now revamping its rules. The government is stricter steps to control massive investments in the country. The MAS has also provided revised guidelines on how crypto companies can operate. Out of 200 applications, the government has approved only 14. It sends the signal that the government is looking at various options before approval. MAS has clarified that these steps shall provide a responsible way of investing. However, this approach is not welcomed by everyone. Experts claim that Singapore may soon lose its charm. It will become stricter and Singapore may soon be a not-friendly crypto country.
Considering the market volatility of cryptos, it is also true that there is no guarantee which token or company will survive. The market crash is a classic example of this. The popular stablecoin Terra just wiped out completely from the market in less than 24 hours. Along with Terra, there are other tokens also in the pipeline.
