Wong says SG had plans to tighten rules on crypto even before FTX bankruptcy

Singapore is open to digital innovation but not crypto speculation.

Following the recent bankruptcy involving FTX, a crypto exchange, Deputy Prime Minister Lawrence Wong underscored their plans to put up stricter regulations on cryptocurrency trading.

He said the crypto market’s situation has “reinforced” their views that the Lion City is on the right track to invest in digital assets innovation. News surrounding the crypto market showed that FTX owed at least $3b from its creditors.

“A lot of potential there. But we have said this for a long time, even when people criticise us for saying that, which was that we need to take a strong stance against crypto speculation and trading, especially by retail investors,” Wong told Bloomberg in an interview.

“So even before FTX happened, we had put out a consultation paper on tightening regulatory rules around this aspect on crypto trading, on retail investors’ access to crypto,” he added.

Whilst Singapore introduced consultation papers and review on rules for crypto, Wong said they will continue to embrace the innovation offered by digital assets.

“We are open to digital innovation and digital asset innovation, but we are not open to crypto speculation at all,” he said.

Wong said the FTX case also uncovered serious allegations of potential fraud, which will open up a range of issues.