Singapore considered as the tax haven for cryptocurrencies has taken a huge hit as many big digital asset related firms collapsed this year. However, Singapore earlier decided to harden its stance on the trade of cryptocurrencies.
Terra collapse taking Singapore down?
As per, the recently worldwide launched manhunt for Do Kwon, Chief of Terraform labs brought Singapore under the spotlight. Terra’s native token LUNA and Stablecoin USTC’s historic collapse triggered the crypto downturn.
However, Do Kwon registered its Terra labs in Singapore back in May. Meanwhile, the South Korean prosecutors claim that Terra Cheif traveled to the Asian nation in April. Meanwhile, Do Kwon displayed its location on Twitter as Singapore.
Terra chief also mentioned that he is making zero effort in hiding from the authorities. He added that he goes out on walks and to malls. However, he claims that no one from the authorities has contacted him or run into him over the past weeks.
Do Kwon case is not the only crypto controversy that has shaken the reputation of Singapore as a digital asset friendly nation. Meanwhile, crypto experts suggested that a long list of collapses and scandals has deteriorated Singapore’s reputation.
Crypto firm collapse to continue?
An expert highlighted that every time any news broke out that a company collapsed, they are mentioned as being based in Singapore. The last six month has done huge reputation damage to the nation’s reputation. While it has done more damage to the market.
However, the biggest of crypto firm collapses have been traced to Singapore. The expert mentioned that Singapore provides the most liberal regulatory space after Switzerland for crypto investments.
Crypto hedge fund, Three Arrows Capital which started as a registered fund management firm in the Asian nation, collapsed in June. However, the firm later shifted to another location. Meanwhile, its co founders have not revealed their location since then.