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Workers’ Party MPs file questions on Govt’s safeguards for cryptocurrency in Singapore

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SINGAPORE — On Tuesday, Ms He Ting Ru and Mr Dennis Tan of the Workers’ Party (WP) filed parliamentary questions (PQs) surrounding the government’s control and safeguards on cryptocurrency, in light of the bankruptcy of cryptocurrency exchange FTX which has affected a number of Singaporean investors including Temasek Holdings.

These questions are on top of the other questions filed in regard to Singapore’s two Sovereign Wealth Funds (SWFs) by other WP MPs for the upcoming parliamentary sitting on 28 November.

Posting about the PQs filed by the WP MPs, Ms He noted that the cryptocurrency markets were rocked last week by the sudden collapse of FTX, once again drawing attention to the risks surrounding this relatively new instrument and market.

“Of concern too was the investments made by Temasek into the exchange, and the announcement that these were now being written down to zero.” said Ms He in her Facebook post and that the WP MPs look forward to the debate on these important topics.

Ms He who is the Member of Parliament for Seng Kang GRC, is asking the Prime Minister if the Monetary Authority of Singapore (MAS) will consider leading a specific study into the regulatory lessons to be learnt from the collapse of cryptocurrency exchanges such as Terra and FTX and whether is there a need for tighter requirements to ensure the stability of regulated cryptocurrency exchanges in Singapore.

She also asks if the various insolvencies of cryptocurrency exchanges and extreme volatility in the cryptocurrency markets in the last year will affect Singapore’s efforts to become a robust global blockchain and fintech hub and whether MAS will consider further regulatory measures to prevent any contagion into the wider cryptocurrency, fintech and financial markets.

As to the risk of cryptocurrency, Ms He asked about the MAS’s requirements as to the prudential treatment of Singapore banks’ crypto asset exposure and what are the riskweighting requirements applicable to crypto asset exposures in assessing Singapore banks’ capital adequacy.

Ms He further asks if there is an estimated number of Singapore investors who are affected by the insolvency of cryptocurrency trading platform FTX and what the estimated size of total investments is being affected and if there are any from retail investors.

Mr Dennis Tan Lip Fong, MP for Hougang SMC is asking if the Government intends to introduce further measures or safeguards to regulate cryptocurrency trading or investment, as well as to protect Singaporean retail investors in general.

MAS’ Actions On Cryptocurrency

In a press release on Monday (21 Nov), MAS said that it is a misconception that it could protect local users who dealt with the cryptocurrency exchange, such as by ringfencing their assets or ensuring that FTX backed its assets with reserves, as it did not license FTX and the exchange operates offshore.

It also noted that the reason why Binance was placed on the Investor Alert List (IAL) while FTX was not, is because Binance was actively soliciting users in Singapore while FTX was not.

MAS said Binance had, in fact, gone to the extent of offering listings in Singapore dollars and accepted Singapore-specific payment modes such as PayNow and PayLah.

It shared that it received several complaints about Binance between January and August 2021. There were also announcements in multiple jurisdictions of unlicensed solicitation of customers by Binance during the same period.

On the other hand, MAS claims that there was no evidence that FTX was soliciting Singapore users specifically and trades on FTX also could not be transacted in Singapore dollars. However, it also noted that Singapore users were still able to access FTX services online.

A contributor to TOC noted that FTX does have a Singapore-registered subsidiary, Quoine PTE LTD which received an exemption for a MAS license and has been actively soliciting Singaporean users.

He notes that Quoine allows Singaporean users to register using their SingPass and that it has recently halted withdrawal on its Liquid exchange platform, blaming FTX’s bankruptcy in the United States.

He asked whether MAS should have required Quoine to ringfence its Singaporean customers’ funds as a condition for its MAS license application.

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Crime

Singaporean fugitive deported from Thailand, to be charged with drug trafficking

A Singaporean fugitive arrested in Thailand, was deported to Singapore on 19 September 2024 and faces drug trafficking charges. Authorities expect him to face the death penalty under Singapore’s tough drug laws for running a smuggling operation between Thailand, Australia, and Singapore.

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8 hours ago

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19 September 2024

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A 31-year-old Singaporean man, wanted for drug trafficking offences, was arrested in Thailand and deported to Singapore on 19 September 2024.

The fugitive, identified as Benny Kee Soon Chuan, was apprehended by Thai police at his residence near Bangkok’s Suvarnabhumi Airport and will face charges in court on 20 September.

Kee, described as a high-level trafficker, ran a smuggling operation that trafficked crystal methamphetamine, ketamine, and Ecstasy to Australia and Singapore using Thailand as a transit hub, according to Pol Lt Gen Panurat Lakboon, secretary-general of Thailand’s Office of the Narcotics Control Board (ONCB).

Cross-Border Investigation and Arrest

The Central Narcotics Bureau (CNB) of Singapore had issued an arrest warrant for Kee following investigations into two drug trafficking cases in December 2020 and November 2022.

He had been on the run since 11 April 2016, prompting CNB to collaborate with its international counterparts, including the ONCB. Thai authorities were tipped off by CNB on 12 August 2024, and after weeks of investigation, Kee was apprehended on 17 September.

Thai immigration officials revealed that Kee had entered Thailand earlier in 2024 using a Vanuatu passport.

Following his arrest, Kee’s Thai visa was cancelled, and assets worth 15 million baht (S$585,000), including luxury watches, gold pieces, and a luxury car, were seized during a raid on his residence in Samut Prakan.

Lt Gen Panurat confirmed that the fugitive had been living an affluent lifestyle in Thailand despite lacking legitimate employment.

Links to Broader Drug Network

Kee is believed to be linked to other Singaporean traffickers involved in the smuggling of drugs from Thailand.

In March 2021, Thailand’s Anti-Trafficking in Persons Task Force (AITF) intercepted packages containing Ecstasy and ketamine destined for Singapore, as well as crystal methamphetamine bound for Australia.

Two other Singaporean men, aged 21 and 29 at the time of their arrests, were later sentenced to imprisonment and caning in Singapore for their involvement in these operations, which were connected to Kee’s trafficking network.

Death Penalty Under Singaporean Law

Kee’s deportation to Singapore brings him under the jurisdiction of Singapore’s severe drug laws, which prescribe the death penalty for those convicted of trafficking substantial amounts of controlled substances.

Singaporean authorities have indicated that he could face the death penalty under the country’s strict drug trafficking laws. Pol Lt Gen Panurat indicated that Singaporean authorities are expected to seek the maximum penalty for Kee’s alleged offences.

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Arts & Culture

Epigram Books to close SAM bookshop amid low sales and footfall

Epigram Books will shut down its bookshop at the Singapore Art Museum on 26 January 2025, citing low sales and foot traffic. The independent bookstore, known for supporting local authors, will continue to operate its online store, but its future in brick-and-mortar retail is uncertain.

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8 hours ago

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19 September 2024

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Epigram Books, a major supporter of Singaporean literature, will close its Epigram Coffee Bookshop at the Singapore Art Museum (SAM) on 26 January 2025.

The decision comes after years of struggling with low sales and foot traffic at the Tanjong Pagar Distripark location, marking the end of the bookstore’s three-year lease.

The announcement on 19 September follows Times Bookstores’ closure of its final outlet in Holland Road, highlighting the growing challenges faced by brick-and-mortar bookstores in Singapore.

Edmund Wee, publisher at Epigram Books, expressed disappointment, stating: “We tried everything to make this work. Over the past three years, we’ve often asked ourselves, how many people even knew our bookstore existed here, let alone visited?”

Despite efforts to boost traffic, including operating shuttles to increase accessibility, the bookstore struggled to attract visitors consistently.

Epigram Coffee Bookshop, previously located at the Urban Redevelopment Authority Centre on Maxwell Road and later in a pop-up at Beach Road, relocated to SAM in May 2022 in partnership with Balestier Market Collective.

The 20-seater store featured towering shelves showcasing local and Southeast Asian titles, including books from other independent publishers like Ethos Books and Math Paper Press.

However, the location’s industrial setting, which only saw spikes in visitors during major exhibitions like Olafur Eliasson’s, limited consistent footfall.

The closure coincides with the end of Eliasson’s exhibit on 22 September 2024. Although the exhibition provided a temporary boost to the bookshop’s sales, Epigram noted that the increased traffic was short-lived.

Epigram’s future in physical retail remains uncertain. Mr Wee indicated that high rental costs make reopening a physical store unlikely: “Unless rent prices relent, it’s unlikely we’ll move into another space.”

Epigram Books has been a significant presence in Singapore’s independent book scene, promoting local authors and holding literary events.

The bookshop was also a community hub for the literary arts, hosting numerous book launches and events supporting local writers. “These spaces are special to our literary arts community. They’re where book lovers gather, where literary events and book launches happen in support of our writers,” said Mr Wee.

Despite the closure of the SAM store, Epigram will continue to operate its online store. The publisher emphasized the need for continued support from readers: “We’ve come this far with everyone’s support, and we look forward to continued support from our readers as we transition to focus on online sales.”

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