Singapore’s central bank imposes 9-year ban on Three Arrows founders

TL;DR Breakdown

  • Singapore’s central bank, the Monetary Authority of Singapore (MAS), has imposed nine-year prohibition orders on Kyle Davies and Zhu Su, co-founders of 3AC.
  • The prohibition orders prohibit Davies and Su from engaging in regulated activities in Singapore. 
  • The enforcement action against Su and Davies comes amidst a broader global effort to regulate the cryptocurrency and digital asset space.

Description

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has imposed nine-year prohibition orders on Kyle Davies and Zhu Su, co-founders of the crypto hedge fund Three Arrows Capital (3AC). The prohibition orders come in response to alleged violations of the country’s securities laws by the duo and their now-bankrupt fund. The prohibition orders, which … Read more

Singapore’s central bank, the Monetary Authority of Singapore (MAS), has imposed nine-year prohibition orders on Kyle Davies and Zhu Su, co-founders of the crypto hedge fund Three Arrows Capital (3AC). The prohibition orders come in response to alleged violations of the country’s securities laws by the duo and their now-bankrupt fund.

The prohibition orders, which took effect on September 13, prohibit Davies and Su from engaging in regulated activities in Singapore. Additionally, they are barred from managing, serving as directors, or holding substantial shares in any capital market services business within the country.

MAS’s decision to bar Davies and Su follows a thorough investigation into 3AC and its co-founders. During the investigation, MAS uncovered several securities law violations attributed to Su and Davies. Among these violations, the co-founders allegedly failed to notify the central bank when 3AC appointed a new business representative. They also provided false information to regulators and lacked an appropriate risk management framework.

Loo Siew Yee, the assistant managing director of policy, payments, and financial crime at MAS, expressed the regulatory body’s serious concern regarding the actions of Su and Davies. She stated, “MAS takes a serious view of Mr. Zhu’s and Mr. Davies’ flagrant disregard of MAS’ regulatory requirements and dereliction of their directors’ duties.” Yee emphasized MAS’s commitment to taking action against senior managers who engage in such misconduct.

Monetary Authority of Singapore  prohibition orders

The prohibition orders reflect MAS’s dedication to upholding the integrity of Singapore’s financial markets and ensuring that individuals and entities operating within the country adhere to robust regulatory standards. Singapore has established itself as a global financial hub with a reputation for strong oversight and adherence to international financial regulations.

The enforcement action against Su and Davies comes amidst a broader global effort to regulate the cryptocurrency and digital asset space. As digital assets gain prominence in the financial sector, regulators worldwide are keen on implementing measures to safeguard investors and maintain market stability.

This development serves as a reminder to cryptocurrency industry participants that regulatory compliance is a paramount consideration. Failing to adhere to the regulatory framework established by financial authorities can result in severe consequences, as demonstrated by MAS’s action against the co-founders of 3AC.

The cryptocurrency industry continues to evolve rapidly, and as it does, regulatory scrutiny is likely to intensify. Market participants, including hedge funds and cryptocurrency-related businesses, must remain vigilant in their efforts to comply with applicable laws and regulations to avoid legal repercussions.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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