Asia Crypto News: Singapore’s Regulatory Crackdown Influenced by 3AC and Terraform
By Sam Reynolds
June 13, 2025, 1:47 a.m.
In a significant turn of events in the cryptocurrency landscape, the Monetary Authority of Singapore (MAS) has implemented strict regulations targeting offshore digital token service providers. The crackdown comes as the fallout from high-profile bankruptcies like Three Arrows Capital (3AC) and Terraform Labs continues to impact the city-state’s financial reputation.
Major Market Movements
The global cryptocurrency market is feeling the heat as tensions escalate in the Middle East. Following recent airstrikes conducted by Israel on Iranian nuclear facilities, major cryptocurrencies saw a notable dip. Bitcoin (BTC) is currently trading at approximately $105,260.63, reflecting a 0.77% decrease, while Ethereum (ETH) has dropped by 4.05%, now valued at $2,537.34. This decline mirrors broader market uncertainty and has raised concerns among investors regarding future volatility.
While ETH has demonstrated substantial growth—surging nearly 40% over the past three months—its recent performance underscores a shift in investor interest toward altcoins. Market analysts, including Charmaine Tam of Hex Trust, suggest that ETH’s relative strength could indicate a broader appetite for alternative investments among traders.
MAS’ Regulatory Developments
On June 6, 2025, MAS announced that digital token service providers servicing foreign clients from Singapore will be required to obtain licenses by June 30, 2025. This requirement is particularly pertinent to exchanges like Bitget and Bybit, which are now facing operational shutdowns in Singapore. This development marks a decisive shift towards stricter regulatory oversight, aimed at preventing the use of Singapore as a mere paper base for companies operating in the cryptocurrency space.
The MAS has been hinting at this regulatory tightening since at least 2023. In a previous update, regulators indicated that even firms with no local clients would fall under MAS jurisdiction if registered in Singapore. This decision is likely influenced by the high-profile failures of firms like 3AC and Terraform Labs, which were formally registered in Singapore but primarily conducted their operations elsewhere. Both firms left minimal operational traces in Singapore, yet their collapses reflected poorly on the city-state’s regulatory environment.
The Legacy of 3AC and Terraform
3AC and Terraform Labs serve as cautionary tales for authorities worldwide, particularly Singapore’s MAS, which had to confront reputational damage arising from these firms. Although both companies maintained official addresses in Singapore, their actual operational capabilities were centralized elsewhere, diminishing local regulatory power. The MAS previously issued trading bans against the founders of 3AC in response to their firm’s downfall, highlighting the urgency of enhanced regulatory measures.
Quantum-Safe Innovations
In other news, the cryptocurrency space is adjusting to new technology threats. The team behind Quranium has launched the QSafe Wallet, designed to protect digital assets from the potential risks posed by quantum computing. With post-quantum encryption methods, QSafe Wallet aims to address vulnerabilities before they can be exploited, promoting a proactive approach to security in a rapidly evolving technological landscape.
Market Impacts
As markets react to these developments, Bitcoin and Ethereum remain under pressure. Bitcoin has seen a sharp decrease of 4.7% due to geopolitical tensions, while Ethereum struggles to gain traction amidst a descending price channel. Meanwhile, gold prices surged, hitting a one-week high as investors seek refuge from the instability characterized by current events. The Nikkei 225 index in Japan also registered a decline, reflecting broader market concerns.
As the regulatory landscape continues to evolve, the implications for cryptocurrency firms and investors will be significant. The MAS’s firm stance on offshore operations is likely to set a precedent for other jurisdictions grappling with similar challenges in the crypto space.
Stay tuned for more updates and insights into the cryptocurrency market as we monitor these critical changes.
Share this article:
