Crypto’s Future Remains Uncertain In These Countries After 3AC Saga
Cryptocurrency hedge fund Three Arrows Capital is currently being liquidated and its effect can be seen around the industry. With 3AC collapsing, more crypto firms around the world are bracing for further bankruptcies.
This sharp drop in prices has attracted the ire of several financial regulators, pointing towards tougher legislation over the sector.
Singapore’s crypto sector faces significant setbacks
The Monetary Authority of Singapore (MAS), which had been welcoming of cryptocurrencies so far, might change its approach towards the sector, according to industry insiders. As per KPMG data, investment in Singapore’s crypto sector rose to $1.48 billion in 2022 – ten times more from 2021. But with current market conditions and the collapse of 3AC, industry players are skeptical of upcoming regulations in Singapore, Hoi Tak Leung, a senior technology sector lawyer at Ashurst told Reuters.
The entire crypto sector is experiencing the ripple effects of 3AC liquidation. According to local media reports, fund management company Mirana is suing 3AC in Singapore over a loan it extended to the crypto hedge company. Crypto lender Voyager also filed for bankruptcy last week after 3AC defaulted on a $650 million loan.
Crypto regulations are likely to remain in a gray area.
Most Asian regulators have always been harsh when it comes to crypto regulations. With more and more countries imposing heavy taxes on cryptocurrencies, the recent market collapse could give them a reason to go ahead with more strict regulations. Earlier, India imposed a 30% tax on cryptocurrencies, causing a widespread panic among the Indian crypto community. If Singapore goes ahead with more anti crypto regulations, other countries might follow suit and pass similar laws.
After Terra LUNA’s collapse South Korea formed a special committee as a watchdog over the crypto industry that would be responsible for policy preparation and supervision. If this trend follows, crypto regulations in most countries are likely to remain in a gray area for some time.
- Trump-Backed World Liberty (WLFI) Plans RWA Tokenization Paired with USD1 Stablecoin
- Stripe Eyes U.S. Banking Charter, Pioneers One-Click Stablecoin Issuance for Firms
- Breaking: Metaplanet Expands Treasury With 5,268 BTC Purchase, Climbs to 4th Largest Holder
- BREAKING: Nasdaq Files with US SEC to List BlackRock Bitcoin Premium Income ETF
- Mr Beast, Whales Buy ASTER Token Amid 20% Crash, What’s Next?
- XRP Price Outlook After Ripple CTO David Schwartz Resigns
- SUI Price Eyes $4.5 as Coinbase Futures Listing Sparks Market Optimism
- Chainlink Price Holds $20 Support Amid Tokenization With DTA Standard Progress – Is $47 Next?
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
