Singapore May Soon Ban Crypto Trading: Here’s What You Should Know

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The Monetary Authority of Singapore (MAS) has announced plans to reduce crypto trading risks and support stablecoins through increased regulation.

The Monetary Authority of Singapore (MAS) published two consultation papers proposing regulatory frameworks to reduce investors’ risk in crypto trading and support stablecoins for transactions. The measures, which include consumer protection, business conduct rules, and technology risks Reduction are part of the Payment Services Act. Retail investors will not be able to use credit cards or borrow funds for buying cryptocurrencies under the proposed regulations

On October 26, The Monetary Authority of Singapore announced in a press release that they are considering methods to reduce risks for retail investors who trade cryptocurrencies. In addition, they would like to regulate the issuance stablecoins (a type of cryptocurrency) that are pegged to another currency.

Given that cryptocurrencies are integral to the digital asset landscape, the MAS has decided not to ban them. As a result, crypto trading providers like exchanges must make sure they engage in fair business practices and disclose risks adequately.

In order to mitigate risk, the crypto service providers must take measures such as prohibiting retail investors from using credit cards and leverage for crypto trading. They will also need to handle segregation of customers’ assets and complaints. As far as technology risks go, the MAS wants companies to maintain high availability and recoverability of critical systems.

MAS requires stablecoin issuers to publish a white paper which details subjects such as redemption rights. In addition, MAS will regulate stablecoins as a means of exchange in the digital asset domain ecosystem. Its objective is to broadened the regulatory Principles for stabilized coins so that there is an increase in value stability worldwide.

The MAS prefers well-regulated and securely backed stablecoins. Also, banks can issue stablecoins without having to increase their reserve backing or prudential requirements. The deadline for comments on the proposals is December 21st.

Ms Ho Hern Shin, Deputy Managing Director of the MAS, said:

“The two sets of proposed measures mark the next milestone in enhancing Singapore’s regulatory approach to foster an innovative and responsible digital asset ecosystem.”

The recent failure of many cryptocurrency companies based in Singapore has led to a more strict governmental stance on digital assets. The proposed regulations would also prevent users from staking or lending their cryptocurrencies to generate yield.

The recent string of crypto firm failures in Singapore, including Three Arrows Capital, Terraform Labs, Zipmex, Vauld, and Hodlnaut,, has prompted the introduction of a new regulatory framework. Coinbase and Blockchain.com are two firms that have recently received licenses to operate in Singapore.

What Are Gas Wars?

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When different network participants race to include their transactions in the next block, it’s called a gas war. If you find yourself caught up in one of these wars sometime in the future, here’s how you can come out on top.

The blockchain space is frequently compared to the Californian Gold Rush, with prospectors battling it out for Fuel. These battles are what we like to call gas wars.

During a gas war, network participants compete to secure space in the next block by taking part in a “priority gas auction” or PGA. This involves paying more for gas than the average transaction fee in order to get better positioning in the next block. Oftentimes, the winners of a gas war might end up paying several times the average transaction fee.

Some might say, “Why spend more money on gas?” The answer is to ensure that the transaction is processed by the network quickly. This would be useful for taking advantage of an opportunity that won’t last long or participating in an event where it’s advantageous to be one of the first people there.

Usually, when there’s a “gas war,” it’s because people are vying for entry into something that has limited spots and is high in demand. For instance, this happens a lot during NFT drops or IDOs (initial DEX offerings). With so many people trying to get in on the action, they’re willing to pay extra gas fees to increase their chances of being one of the few who secures a spot.

Gas wars occur when people compete to gain an advantage, like limited access to slot investment opportunities or being the first to sell tokens in a declining market.

If you want to come out ahead in a gas war, the first thing you need to do is accept that you’re probably going to be in one. This means thinking about whether there will be a lot of people trying to get block space when you want to make your transaction.

If you want to avoid a gas war, use our events calendar to find out which days could have high demand for block space. This is especially useful for first-come-first-serve type events that are hosted on the Ethereum network.

If you want to win, be prepared to overspend on gas. Many Web3 wallets will let you change the amount you pay for gas, so take advantage of this feature. Research current prices using a service like ETH Gas Station (e.g., 50 gwei), then set your bid accordingly.

If you want to increase your chances of success, be prepared to overspend on gas. It’s not uncommon for people to spend more than 1,000 gwei per slot, and even then there’s no guarantee that everything will run smoothly. Between internet latency, node issues, wallet glitches and more, delays are always a possibility — which in turn lowers your chance of winning.

If you’re looking to avoid the “Out of Gas” error, consider increasing not only the amount paid for gas, but also raising your gas limit above what your Web3 wallet advises.

Oftentimes, people engage in gas wars with the understanding that the possible benefits exceed any negatives from a loss. Beforehand, some number crunching is needed to determine the maximum gas fee you’d be willing to pay for a slot–as it could cost hundreds of dollars in gas just to have a chance of winning.