3AC Founders Banned by Singapore Central Bank
The Monetary Authority of Singapore (MAS) has banned Zhu Su and Kyle Davies, founders of cryptocurrency firm 3AC, from engaging in any regulatory activity or managing capital market services in Singapore. The ban will be effective from September 13, 2023. MAS took this action after discovering several breaches committed by the 3AC founders.
False Information and Regulatory Breaches
MAS found that the founders provided false information to the regulatory authority, failed to notify about changes in directorship and shareholdings, and exceeded the allowable assets under management threshold for a registered fund management company. Additionally, 3AC did not inform MAS in a timely manner about the employment of a portfolio manager, violating SFR regulations.
MAS Assistant Managing Director Loo Siew Yee emphasized the importance of robust risk management by senior management of fund managers. She condemned Zhu and Davies for their disregard of regulatory requirements and neglect of their duties as directors.
Responsibility of Zhu Su and Kyle Livingston Davies
As directors of 3AC, Zhu Su and Kyle Livingston Davies were responsible for ensuring compliance with regulatory requirements. However, the MAS investigation found that they failed in their duties and directly caused the regulatory breaches committed by 3AC.
Earlier this year, Zhu Su and Kyle Davies faced a $2.7 million fine from Dubai’s Virtual Assets Regulatory Authority for their new exchange, OPNX. The fine remains unpaid.
Hot Take: Consequences for Regulatory Breaches
The banning of 3AC founders Zhu Su and Kyle Davies by the Monetary Authority of Singapore highlights the serious consequences faced by individuals who breach regulatory requirements in the cryptocurrency industry. This action serves as a reminder that robust risk management and transparency are crucial for maintaining the integrity of the market and protecting investor interests. The crypto community must adhere to regulatory standards to foster trust and credibility in the industry.
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