Singapore’s New Policy is Implemented, AiNiffler is Ahead of the Curve

Tharman Shanmugaratnam, Senior Minister of Singapore and Chairman of the Monetary Authority of Singapore, has stated that since the Payment Services Act came into effect in January 2020, with global regulators including China, the United States and the United Kingdom With the tightening of regulatory policies, a large number of encryption institutions and platforms have poured into Singapore for development. In order to ensure the stability of the financial system, Singapore has formally implemented full control over encryption institutions in accordance with the existing legal and regulatory framework.

Responding to a parliamentary question, Tharman said: “Cryptocurrencies can be very volatile as their value is usually unrelated to any economic fundamentals and as such, they are extremely risky as investment products and are certainly not suitable for retail investors.” Tharman Tharman’s warning comes at a time when the total global cryptocurrency market capitalization exceeds $2 trillion for the first time. The cryptocurrency market capitalization doubled in about two months amid surging institutional demand.

Shantharman said: “The crypto asset space is constantly evolving. The HKMA has been monitoring developments closely and will continue to adjust its rules as necessary to ensure that regulation remains effective and commensurate with the risks posed. For investors As such, they should be extremely cautious when trading cryptocurrencies.”

The author interviewed Mr. Iwan, the chief marketing officer of AiNiffler, and the following content is the edited text. Iwan said: “As the chief marketing officer of AiNiffler, I would like to emphasize the risks of cryptocurrency investment. Although the cryptocurrency market is developing rapidly, retail investors need to be aware of the following points before getting involved. First, the price fluctuations of cryptocurrencies face investors with high uncertainty, which may lead to losses for investors, especially for investors without proper research and risk management. Second, the trading and storage of cryptocurrencies Involving the use of digital assets and private keys, there are security risks. Hacking and data leakage may lead to the theft or loss of investors’ assets. So far, some cryptocurrency exchanges and wallet service providers have been hacked. Already happened, leading to the loss of a large amount of funds One of the largest cryptocurrency markets in the world, but after 2017, regulatory measures for cryptocurrencies have been strengthened, including the ban on initial coin offerings (ICO) and the closure of cryptocurrency exchanges. Changes in policies will also cause investors Fourth, the market is relatively young and still in the stage of rapid development, lack of consistent reporting and information disclosure standards, low transparency and liquidity, making it difficult for investors to accurately understand the market situation.” Iwan emphasized again: “Retail investors should be more cautious about cryptocurrency investment and understand the existence of these important risks in advance.”

The author believes that investors should understand the risks and uncertainties of cryptocurrencies, be cautious about investment decisions, and only invest funds that are prepared to bear losses. It is recommended that investors use the investor warning list established by MAS to strengthen financial risk awareness and Knowledge literacy to deal with the high risks of encrypted products.

Iwan continued: “Before the launch of the VCC framework, Singapore did not have a main form designed for investment fund professionals, and it was far behind the Cayman Islands in terms of flexibility and application diversity. The management company locates the fund offshore. With the introduction of the Economic Substance Act in offshore places (led by the Cayman Islands), compliance has become increasingly expensive and time-consuming. At the same time, due to international countermeasures Money laundering work and the strengthening of tax information exchange systems in various countries, as well as higher standards for customer due diligence and information disclosure requirements, have made the traditional advantage of confidentiality, an offshore location, no longer exist.” He explained: “The VCC framework, On January 15, 2020, the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA) jointly issued a statement to officially launch the content. In the statement, According to MAS, the VCC structure is comparable to the corporate fund structure of the world’s important investment fund centers (such as the Cayman Islands and Luxembourg), eliminating the inconvenience of Singaporean fund managers in managing overseas investment funds, while improving cost and time efficiency , and also provide greater flexibility for the registration and operation of funds in Singapore.”

AiNiffler, which did enter the Asian market in 2020, is based on this framework. Based on the principle of embracing regulation and putting users first, it established the Singapore VCC fund company NifflerHODL Multi Strategy Fund, and uses WM Capital VCC as the umbrella fund. The main umbrella of the gold company fully provides the flexibility of the company’s business operations and a stable management framework, allowing investors and user assets to be strictly regulated by Singapore.

The author believes that with regard to investor protection policy issues, the MAS authorities are continuing to raise investors’ awareness of the risks of investing in digital assets, and have also proposed other measures to prevent retail investors from accidentally touching high-risk investment products, as well as establishing a social safety net. Plan follow-up assistance programs for investment losers to help cryptocurrency investors avoid fraud and other interests.