Dubai eyes crypto crown as SG opts for caution

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Hi readers,

Have you ever gone for an interview or took a test and left the room feeling like you did a pretty good job, only to find out that you’d flunked it?

I imagine that’s how many crypto hopefuls in Singapore must feel.

Over 170 firms pursued a digital payments token license in the city-state when the Monetary Authority of Singapore started accepting applications in early 2020. But since then, an overwhelming number of these applicants have been either rejected or asked to withdraw.

While rejection is part of doing business, many contenders say they don’t know why they failed even after a rigorous process that stretched to over a year and involved multiple conversations with the regulator. Many can only guess at the reasons.

Here’s what I think: In the high-stakes game of crypto, there’s little incentive for any country or jurisdiction to be a pioneer. A second or third mover, sure. But to be the first? There’s too much on the line, given crypto’s high volatility and reputation as a speculative asset as well as money laundering risks.

It’s no wonder why regulators all over the world are being extra cautious. Obtaining a stamp of legitimacy is a huge deal for any crypto operator and could usher in a flood of newcomers and users onto a platform.

Till then, it seems that firms will hop from market to market in their search for regulatory approval. And at the moment, Dubai seems pretty high on their list.

— Melissa Goh, journalist at Tech in Asia

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Image credit: Timmy Loen

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