Stablecoin Payments in Singapore Hit Record High in Q2, Approaching $1 Billion

Gairika Mitra — Thu, 12 Sep 2024 13:37:53 +0000

Stablecoin payments in Singapore hit a record high of nearly $1 billion in the second quarter, driven by merchant transactions, according to a report from Chainalysis on Wednesday.

Eric Jardine, Cybercrimes Research Lead at Chainalysis, believes that businesses in Singapore are attracted to stablecoins. It is because of their “efficiency and low cost.” Users can now utilize Singapore’s XSGD stablecoin, along with Bitcoin, Ether, Circle USD, and Tether, to pay for various services.

Decoding Stablecoins

A type of cryptocurrency designed to maintain a stable value, stablecoins are mostly pegged to a fiat currency like the U.S. dollar. People often use stablecoins for crypto trading, making them less volatile than traditional cryptocurrencies like Bitcoin and Ethereum. This stability, along with other benefits of blockchain technology like speed and lower transaction costs, makes stablecoins a more preferred option.

Jeroen Hesp, a notable crypto entrepreneur, commended stablecoins for their ability to “revolutionize” money transfers. According to him, stablecoins helped move over $3 trillion worth of value in Q2 of 2024, making it the fastest growing sector in crypto right now.

Singapore has stepped up its efforts concerning digital assets, concentrating on the advantages of blockchain technology. Last year, the Monetary Authority of Singapore (MAS) announced a regulatory framework to bring about a high value of stability for stablecoins.

The MAS shared that its regulatory framework will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency issued in Singapore. Organizations issuing the SCS will have to fulfill requirements regarding several key areas. These include value stability, capital, redemption at par, and disclosure.

Only those issuers who fullfill all of these requirements can apply to the MAS for their stablecoins to be recognized. According to the MAS, this label will allow users to easily identify stablecoins regulated by the MAS, distinguishing them from other digital payment tokens, including unregulated stablecoins.

Singapore’s Growth as a Crypto Market

The Shib Daily reported earlier about Singapore’s forward-looking stance in the casino industry. It recently approved cashless gaming transactions, however it will not allow any crypto transactions yet.

Reflecting a more supportive stance on cryptocurrency, cryptocurrency exchange OKX has just acquired a full license in Singapore, known as the Major Payment Institution (MPI) license, allowing crypto trading and cross-border transactions.

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Singapore Probes Shadow Market for Worldcoin Accounts

Lawrence Damilola — Tue, 10 Sep 2024 13:11:07 +0000

A shadow market for Worldcoin accounts has drawn the scrutiny of Singaporean authorities, raising concerns about potential breaches of data privacy and the exploitation of the nascent cryptocurrency project.

Illegal Trade of Worldcoin Accounts

Gan Kim Yong, the country’s Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), disclosed the probe on Monday, revealing that individuals are under investigation for allegedly facilitating the illicit trade of Worldcoin accounts and tokens.

“The Police are investigating seven subjects for their suspected involvement in offering the services of buying or selling of Worldcoin accounts and tokens, which constitute offences under Payment Services Act 2019. The Police have also issued a press release on August 7, 2024 to advise members of the public against giving away or selling their Worldcoin accounts, which may then be misused for criminal activities such as money laundering and terrorism financing,” Yong said during a parliamentary discussion.

“The Payment Services Act 2019 (PS Act) prohibits persons who are unlicensed or not exempted from providing a payment service under the PS Act. Based on information provided to MAS, Worldcoin does not perform a payment service under the PS Act. However, persons who buy or sell Worldcoin accounts and tokens as a business may be providing a payment service,” the country’s Deputy Prime Minister and Chairman of the MAS noted.

Worldcoin Responds

Tools for Humanity, a key contributor to the Worldcoin project, has distanced itself from individuals under investigation in Singapore for allegedly operating a black market for Worldcoin accounts. In a statement provided to The Shib Daily, Tools for Humanity emphasized that the suspects are not affiliated with Worldcoin or its operations in any way.

“Neither Worldcoin nor Tools for Humanity are under investigation by police in Singapore. Individuals being investigated by authorities for possible violation of the Payment Services Act are not affiliated with Worldcoin or its operations in any way. The Worldcoin Foundation in Singapore, and around the world, operates in compliance with relevant laws and regulations pertaining to all aspects of the Worldcoin project including the Payment Services Act in Singapore. Any reports or speculation to the contrary are false and misleading,” Tools for Humanity said.

Ongoing Investigation and Potential Charges

It is worth noting that this is not an isolated situation. In a recent crackdown on illicit cryptocurrency activities, Singaporean authorities have arrested five individuals operating an illegal scheme to buy and sell Worldcoin accounts and tokens. The suspects, part of a sophisticated network, recruited others to sign up for Worldcoin accounts, then seized control of these accounts and digital assets for profit.

During the operation, law enforcement seized over 200 mobile phones, providing crucial evidence of the illegal activities. The individuals arrested face potential charges under the country’s Payment Services Act. This bust highlights the ongoing challenges faced by regulators in combating illicit activities within the cryptocurrency space.

Correction:

A previous version of this article incorrectly stated that Worldcoin was under investigation in Singapore. The investigation is focused on individuals involved in illegal transactions related to Worldcoin accounts and tokens. Worldcoin continues to operate in Korea and Germany, and there has been a temporary pause in humanness verification services in Spain. The Shib Daily is committed to providing accurate and reliable information. We apologize for any inaccuracies in the previous version.

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Singapore – The Shib Daily