4th October 2021 > > Singapore.

tl;dr

Singapore breaks new ground with crypto regulation.

Market Snap

Market Wrap

A disappointing retreat from a 24-hour hight of $49.2k indicates a subdued start to the week.

Occasional Series – What is fiat currency?

A number of people have asked me this question over the years.

The Paris branch of Curious Cryptos Ltd. has a resident Latin expert who has confirmed the following explanation.

Fiat is the third person singular, present, subjunctive of fio, fieri - I become or I am made, which itself is the passive of facio, facere, feci, factum - I make.

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Given that info, one interpretation of fiat is that it means “Let it be made”.

When applied to sovereign currencies backed by no more than a promise by the Government to repay in the same sovereign currency, it is clearly being used pejoratively.

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Matt has pointed to a dramatically more positive example being God's first words in the Bible:

“Fiat lux”.

Occasional Series – The universe

A man said to the universe: “Sir, I exist!”

“However,” replied the universe, “that fact has not created in me a sense of obligation”.

Stephen Crane, somewhere in a sci-fi compilation I happen to be reading.

Curious Cryptos’ Commentary – Singapore

A bit of heartening regulatory stuff for you.

Independent Reserve is an Australian based crypto exchange which I must admit I haven’t come across before. A brief look at their website suggests they are much the same as all the other exchanges.

The Monetary Authority of Singapore (MAS) has given Independent Reserve approval to provide crypto services to retail and institutional investors in Singapore.

Adrian Przelonzy, CEO, clearly takes his cues from the CCC with respect to regulation:

“A well-regulated environment will benefit both investors and crypto industry stakeholders. With tailormade rules for the crypto industry, Singapore has the clearest and most detailed licensing requirements of any jurisdiction in Asia. And now, Independent Reserve is one of the first fully licensed crypto exchanges available to Singaporeans, enabling them to quickly and securely use their SGD to get in and out of crypto.”

He goes on to urge the Australian authorities to follow Singapore’s lead to provide a “thorough approach to crypto industry licensing” with special emphasis on custodial services.

This is yet another example where enhanced regulation designed to foster and encourage innovation and development attracts tax dollars compared to a blank regulatory space.

At the same time, DBS Vickers – the brokerage arm of DBS Bank - has been granted the same approval.

A statement from MAS said:

“This will contribute to Singapore’s ambitions to be a digital asset hub in Asia.”

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With a yawning gap opened up by the Chinese government’s decision to “ban” cryptos, crypto tax dollars will allow Singapore to reinforce its status as one of the wealthiest nations on Earth, not because of the popular misconception that it is a regulatory free-for-all, but because its regulations go further than almost everywhere else.