Decoding the Regulatory Wave in Crypto Space: Singapore Vs. China


Breaking down the varied crypto regulatory regimes in China and Singapore

2021 has been a significant year for the crypto sector, especially as it pushes itself into the mainstream. As of yet, the legal status of cryptocurrency differs from country to country. In some parts of the world, its status is legally defined, such as in Ukraine, Canada and Indonesia; while in other parts, regulations and crackdowns are tightening, such as in China and Singapore

Governments’ increasing regulations—be it friendly or hostile—on crypto-based activities are no doubt a bane for crypto exchanges and payment companies. While it’s true that many countries are tightening regulations around crypto trading, they are doing it for different reasons and incentives. Let’s take a look at why Singapore and China are racing to impose stricter crypto regulations.

China’s war with crypto continues

China has waged war against cryptocurrency for a host of reasons. In September, China’s central bank declared all cryptocurrency transactions illegal. The bank said in a statement that crypto-related activities are “seriously endanger[ing] the safety of people’s assets.” This week, the National Development and Reform Commission said at a press conference that the nation is considering punitive measures, such as higher power prices, on companies that continue with crypto mining despite the ban. 

China’s war with crypto has been going on for a very long time. In June 2019, China officially banned crypto trading and creation when the People’s Bank of China stated that it would block all domestic and foreign cryptocurrency exchanges and Initial Coin Offering websites. Despite the 2019 ban, crypto trading continued in China through foreign exchanges. Later in September 2021, the People’s Bank of China (PBOC) blocked overseas exchanges from providing their services to investors. 

More than one agenda is at play behind the strict stance of China against cryptocurrency. 

China has been pushing for its digital currency, the electronic Chinese yuan, and the government is set to launch it nationally at the 2022 Winter Olympics. Hence, the crypto crackdown by Chinese regulators could be a move to push the adoption of its digital currency. Also, other factors like instability and volatility might make Chinese users opt-out of cryptocurrency usage. Decentralized in nature, cryptocurrencies cannot be controlled by any central authority.

Singapore on its way to becoming the new crypto hub in Southeast Asia

While cryptocurrencies face a tough time in China, Singapore is tapping into the huge opportunity by positioning itself as the “new crypto hub” in Southeast Asia. The MAS’s clear regulatory measures and licensing process could position Singapore as a crypto-friendly nation. 

In comparison to China, Singapore has a more progressive approach when it comes to regulating cryptocurrencies. It is also one reason why many China-based crypto companies are applying for a license to set up their operations in Singapore.

According to Ravi Menon, managing director of MAS, having a well-regulated local crypto industry doesn’t just benefit the financial sector. “If and when a crypto economy takes off in a way, we want to be one of the leading players. It could help create jobs, create value-add, and I think more than the financial sector, the other sectors of the economy will potentially gain,” he said in a Bloomberg interview.

In January 2020, Singapore introduced a “Payment Services Act” under which crypto companies could apply for operating licenses. The act controls traditional fiat as well as crypto payments and exchanges. The country has made it easier for foreign crypto exchanges to establish offices with fewer restrictions with this act. Many crypto giants, such as Gemini, Coinbase and, have all applied for operating licenses in Singapore.

Singapore clamping down on Binance

Even though Singapore is in the race to become the global crypto hub, the government is still cautiously approaching crypto players. Binance is a recent example of the government’s guarded stance on cryptocurrencies. Recently, the world’s largest cryptocurrency exchange platform, Binance, faced the heat in Singapore because of pressure from regulators. In September this year, Binance announced that Singapore users of its main platform,, could no longer buy and trade cryptocurrencies in compliance with local regulations. The platform advised its users to cease all related trades, withdraw fiat assets and redeem tokens by October 26 to avoid potential trading disputes.

The announcement came after a warning by the Monetary Authority of Singapore (MAS). The MAS warned Binance that its global platform might be breaching the law by providing payment services to Singapore residents without an appropriate license. The MAS has placed on its investor alert list, which warns consumers about unregulated platforms that have been wrongly perceived as being licensed or regulated by the central bank.

Price crash & market volatility 

The regulatory hurdles in the crypto space have impacted cryptocurrency prices and market volatility for investors. Following the ban by China’s central bank on crypto trading and mining, on September 24, 2021, Bitcoin prices fell as much as 8.9 percent to about US$40,700, while Ether lost nearly 13 percent. However, price turbulence in the crypto market due to any regulatory ban is not a fixed event. On previous crypto bans, Bitcoin prices have also climbed up

Header image courtesy of Unsplash


Share on facebook
Share on twitter
Share on linkedin
Share on email


Amazon vs Flipkart Who Will Win Festival Sale War in India

Amazon vs. Flipkart: Who Will Win the Big Festival Sale War in India?

Amazon India and Flipkart, the two biggest ecommerce giants in India, have always been in a neck-to-neck competition for supremacy in the country. There is no better occasion to showcase their strength and take advantage of people’s shopping mood than during the Indian festive season, which begins in late September featuring various festivals, like Durga Pooja, Dussehra and Diwali.

Reviewing Top AI Boyfriends on Google Play Store

Anima vs. Replika: Reviewing Top AI Boyfriends on Google Play Store

Finding your perfect match can be a long and tedious process. You can go on date after date and still have a long way to go before you find your soulmate. In the meantime, you can curb your loneliness by speaking to an artificial intelligence (AI) chatbot.There are dozens of AI chatbots on the market today that give you the experience of having someone to vent your issues to and discuss your daily lives with.


What Is “Shrinkflation” and Why Opting For It Isn’t Companies’ Only Choice

You might have noticed grocery prices are soaring, or your usual go-to pack of chips is shrinking in size—all thanks to massive inflation. As of August 2022, the U.S. consumer price index (CPI), which measures the change in consumer prices for a specific set of goods over a period, has increased by 8.3% (year-on-year). Although it has gone down slightly from 8.6% in May, the highest it has ever been since 1981, it remains high and worrying.

Top 3 Affordable and Little-Known Smartphones to Bring Home in 2022

Top 3 Affordable and Little-Known Smartphones to Bring Home in 2022

Apple has remained at the center of the smartphone industry for years. The sleek, striking design, ever-improving chip and robust camera system of the iPhone have made it one of the most sought-after smartphones in the world. This month, Apple cemented and extended its lead in the industry by putting forward the next generation of iPhones.

5 More Business Podcasts You Need to Listen To

5 More Business Podcasts You Need to Listen To

Entrepreneurs have one thing in common—they always look for opportunities to learn and grow. To gain an understanding of running a viable business, you need to listen to the experiences of those who have emerged triumphant in the business world. A great way to do so is by tuning into a vast number of business and entrepreneurship podcasts scattered across the internet today.

5 Hobbies To Maximize Your Entrepreneurial Drive

5 Hobbies To Maximize Your Entrepreneurial Drive

Entrepreneurs are a special breed of person. They’re go-getters, risk-takers and dreamers. Yet, even the most driven entrepreneur needs to take a break from time to time. Spending every second of your day on your business is stressful, and you will lose your drive very soon. If you want to stay energetic and ready to take on new challenges at work, hobbies are what you need.