Singapore’s financial regulator has suspended a well-known digital currency exchange involved in an encrypted pension plan that claims to be linked to South Korea’s largest boy band BTS.
Singapore suspends the local business of Bitget, the sponsor of the Italian football team’s Juventus jersey, at a time when Singapore seeks to establish itself as a global cryptocurrency center.
In October last year, Bitget was threatened by the BTS agency Hybe to take legal action to promote the digital currency Army Coin. Army Coin was named after the organization’s enthusiastic follower BTS ARMY. The owner and creator of the coin is unknown.
The platform has promoted Army Coin as a way to provide life-long financial support to the following people BTS Members “so they don’t have to worry about survival, but let them do what they want to do”. Hybe said that this coin has nothing to do with BTS.
This incident shows that as digital currencies gain wider acceptance among retail investors, regulators are facing the challenge of trying to control the crypto industry.
Spanish market regulators last week Criticizing football player Andres Iniesta Promote Binance, the world’s largest cryptocurrency exchange, through social media posts.
Singapore is a free trade entrepot and financial center. More open to technology Surpasses competitors in Hong Kong and Tokyo.
Popular cryptocurrency companies Binance, Ripple and Coinbase have applied for licenses and obtained exemptions from the Monetary Authority of Singapore to provide services to retail and institutional clients.
According to people familiar with the matter, Bitget also received an exemption, but the exemption was cancelled in July. Both Bitget and MAS refused to provide detailed information on the reasons for the cancellation of Bitget’s exemption.
However, Bitget’s service was still available in Singapore until the end of November, when it was promoting Army Coin, and its website continued to claim that it had been approved by MAS.
After contacting the Financial Times, the company removed the MAS logo from its website and prevented Singaporeans from accessing its apps and website. Bitget still claims to have licenses in the United States, Canada, and Australia.
Bitget did not respond to the British “Financial Times” question on why its services are still available to Singapore residents even after its exemption is cancelled.
At the same time, Army Coin has also been listed on CoinTiger, another cryptocurrency exchange linked to Singapore. CoinTiger’s statement stated that the token “exists for the benefit of BTS” and will “really support them financially”.
Hybe issued a statement in October that the token has no “relationship” with BTS and warned that it will also “take legal action,” but declined to comment on the creator of the Army token.
Although the transaction is extremely volatile, users can still buy and sell the token in Bitget’s other jurisdictions (including South Korea).
An analysis by the British “Financial Times” found that the coin fluctuated as much as 78 times its value in a day and rose back and forth between US$1,000 and US$78,000 within a few minutes.
Like any jurisdiction, the difficulty faced by Singapore’s regulators is that they cannot prevent people from buying risky assets, said Varun Mittal, author of the Financial Times. Singapore: The Country of Fintech.
“If someone wants to spend money on these exchanges, regulators can’t stop them,” Mittal said.
Crypto companies have increased their advertising efforts to capitalize on the growing interest of investors.Crypto.com, a Singapore-based cryptocurrency platform, paid more than US$700 million in November Naming rights for Staples Center, Los Angeles Stadium.
Bitget announced a sponsorship agreement with Juventus in September. The name and logo of the exchange appeared on the team’s black and white jersey, becoming the club’s first ever “sleeve sponsor”.
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