Singapore should seize the chance to be cryptocurrency leader

IN the space of a day, billions of dollars of value was wiped out. Within three days, half of what was lost was restored. This wasn't fantasy, it all happened over the space of five days on the cryptocurrency markets over the week of Sept 4. The crazy thing, though, is that the cryptocurrency markets just carried on. If these were losses on a stock exchange, the outcry would have been huge. Yet, it was just another day of trading in the world of Bitcoin, Ethereum, Monero and countless other coins.

The trigger for the selldown on Sept 5 2017 appeared to have been the strongest signal yet sent by a government that raising funds via initial coin offerings (ICOs) and the trading of cryptocurrency could be illegal. This message came from the Chinese government as it issued a statement that ICOs in China were suspended until further notice and that the various cryptoexchanges in the country were being examined. This follows on from statements by other regulatory bodies such as the US Securities and Exchange Commission and the Monetary Authority of Singapore (MAS) that indicate that ICOs are being monitored to determine whether they contravene securities laws and regulations.

Since then, the rollercoaster has continued, with the markets trying to recover, only to be hit by yet another rumour, destabilising it yet again. However, things appear to have taken another turn as the cryptomarket has hit some US$150 billion amid speculation that the bull market is returning, despite recent news that South Korea, a country that is big on cryptocurrencies, announcing that it would be banning local ICOs and margin trading on its cryptoexchanges.