Impact of Stricter Regulations on Employees in the Digital Token Sector

Overview of Employee Concerns

Mr. Chiam has frequently encountered inquiries regarding the necessity for employees to relocate if their roles involve the handling of digital tokens.

Legislative Implications for Employees

According to insights gathered by Mr. Chiam’s law firm, those whose job responsibilities include working with digital tokens are largely unaffected by the more stringent regulations imposed by the Monetary Authority of Singapore (MAS). He clarified that relocation is largely not expected—this aligns with the intended regulatory framework.

Employee Interest in Compliance

On a positive note, there appears to be an increased interest among employees in understanding how to comply with evolving regulations and stay informed about any changes. This trend indicates a growing awareness of compliance issues within the sector, as observed by Mr. Chiam.

Changes at Centralized Exchanges

An anonymous employee from MEXC mentioned that several other centralized exchanges have enhanced their customer verification mechanisms through the implementation of additional Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Such measures are crucial for ensuring customer identities are authenticated, thereby mitigating illegal activities and adhering to international compliance standards.

Situation at MEXC

Despite MEXC lacking a local operating license, the employee indicated that their colleagues in Singapore have not faced significant disruptions. “While there have been some adjustments within the compliance and legal sectors, overall operations remain relatively unchanged,” the employee remarked.

Developments at Bitget

A Bitget employee, who also chose to remain anonymous, noted that in June, the company made the decision to reduce its customer service team by approximately ten members. This reflects ongoing adjustments within the organization in line with the evolving landscape.

Outreach for Clarifications

CNA has made attempts to reach MEXC, Bitget, and other digital token companies registered in Singapore but not licensed by the MAS for further comments regarding these developments.