Key Takeaways
- Nonkumbulo Tshombe recently reported that during the 2020/21 financial year, her office had seen considerable growth in the number of cryptocurrency-related complaints.
- Due to stringent regulations, 100 companies in Singapore cannot obtain crypto licences.
- Tesla CEO Elon Musk has criticised the present state of the metaverse and the Web3 movement, calling the letter a "marketing phrase."
Nonkumbulo Tshombe, an advocate with the South African office of the financial services sector ombudsman, recently disclosed that during the 2020/21 financial year, her organisation saw a considerable rise in the number of crypto-related complaints.
Despite receiving such complaints, Tshombe is described in a Moneyweb story as saying that her group could not respond because cryptocurrencies are yet unregulated.
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"Crypto-assets are not defined as a financial product," the advocate added, "therefore they fall outside of this office's jurisdiction."
Although South Africa does not yet regulate cryptocurrencies, the Financial Sector Conduct Authority has interfered or pushed action against specific crypto companies or people (FSCA). The FSCA, for example, raided the residence of one of the masterminds in an effort to assist investors in Mirror Trading International (MTI) recover their money.
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Due to stringent regulations, 100 companies in Singapore cannot obtain crypto licences
Since Singapore began regulating the crypto sector, around 170 companies have sought a licence to offer "digital payment token services," including crypto-related services.
However, according to Nikkei Asia, more than 100 companies that filed for a licence were denied or withdrawn their applications.
Exemptions were provided to companies operating in the country before the licensing regime's implementation while their licence applications were completed. In July, Tharman Shanmugaratnam, a senior minister, told parliament that 90 companies were functioning under similar exemptions.
"Cryptocurrencies could be misused for money laundering, terrorism financing, or proliferation financing due to the speed and cross-border nature of the transactions," a spokesperson for the Monetary Authority of Singapore (MAS), the country's central bank and crypto sector regulator, told the news outlet. The representative continued, "
"In Singapore, digital payment token service providers must comply with procedures to reduce such risks, including thorough client due diligence, regular account reviews, and monitoring and reporting suspicious transactions."
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Only DBS Vickers Securities, a unit of DBS Group Holdings, Southeast Asia's largest bank; digital payments startup FOMO Pay; and Australia's Independent Reserve are currently mentioned as licensed businesses on the MAS website. The MAS stated that Singapore aspires to become a worldwide crypto powerhouse in November.
Tesla CEO Elon Musk has criticised the present state of the metaverse and the Web3 movement, calling the letter a "marketing phrase."
Elon Musk confirmed that Tesla would take DOGE for items, boosting Dogecoin by 25
Elon Musk, the CEO of Tesla and a well-known crypto influencer, has given his opinion on the current condition of Web3 and the metaverse movement. Musk is doubtful of the Web3 movement's legitimacy at the moment, stating it "seems more marketing jargon than reality right now."
Web3 and metaverse are phrases that refer to a collection of concepts such as blockchain technology, smart contracts, and decentralised economics that attempt to create a parallel reality to the one we now live in.
This notion, which has been around for a long time, was recently reintroduced by Meta, the corporation that used to be known as Facebook. Meta aims to use its tools and developments to shape since Singapore began regulating the crypto sector around the metaverse.
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While Musk may be sceptical about these technologies' current capabilities, he is more hopeful about the future and what it may bring to customers. Musk explained:
"Given the virtually inconceivable nature of the present, what will the future be? I'm just curious about the future in 10, 20, or 30 years. The year 2051 sounds insanely futuristic!"
What do you think about the Tesla boss remark concerning the Web3 movement?
