Reflections from a former Singapore regulator on virtual assets

Regulatory Ramblings

Ep 55 with Angela Ang, Senior Policy Advisor, TRM Labs

Angela Ang is the Senior Policy Advisor at TRM Labs, a global blockchain intelligence company, and a former regulator at the Monetary Authority of Singapore (MAS). Having spent over a decade at MAS, she held the role of Deputy Director in charge of licensing payments and crypto service providers. Angela has also been recognized as a LinkedIn Top Voice for Finance in Asia for her leadership in digital asset developments.

In this episode, Angela reflects on her journey from growing up in Singapore to her education at INSEAD, and her early career at MAS, where she helped promote Singapore as an international financial hub. As a former regulator, she highlights the unique experience of policymaking at a high level and emphasizes that despite the intellectual rigor, regulators are still people, too.

The discussion shifts to TRM Labs and its role in blockchain intelligence. Angela explains that “Blockchain analytics is like Google Maps for blockchain,” helping clients understand blockchain data to combat fraud and financial crime. While blockchain’s ledger is immutable, clients often struggle to interpret it, and TRM adds context to provide a clearer picture.

Angela draws parallels between her work at MAS and TRM Labs, highlighting the compliance-centric and mission-driven nature of both organizations. She notes that TRM Labs’ nimbleness and entrepreneurial spirit, combined with its focus on integrity, attract former public sector staff.

Angela recalls her first exposure to cryptocurrencies and blockchain in 2015 while researching for MAS. She emphasizes the balance between blockchain’s promise and the risks associated with crypto speculation, echoing Singapore’s prudent regulatory stance on innovation vs. speculation.

She also touches on Asia’s regulatory landscape, noting how the region leads in regulatory clarity. Singapore and Japan pioneered crypto regulation, recognizing the importance of creating robust rules to protect investors. She cites examples like Singapore’s crypto custody rules and Hong Kong’s virtual asset service provider licensing regime.

Angela discusses the global trend toward tighter crypto regulation, with an 80% shift toward stricter controls and consumer protection. She points out that regulation is crucial for preventing illicit activity, but it requires sufficient enforcement and skilled people to ensure compliance.

The conversation then covers the talent shortage in crypto compliance. While older compliance principles still apply, the unique challenges of blockchain technology require specialized expertise. Angela also discusses the importance of SupTech and RegTech, noting TRM Labs’ role in real-time blockchain monitoring tools for both compliance professionals and regulators.

Despite concerns about crypto-related crime, Angela highlights that only 0.63% of global crypto activity involves crime, a figure comparable to traditional finance. She notes that proper licensing and risk controls reduce crime in regulated jurisdictions and emphasizes that most exchanges now have some level of compliance.

Looking forward, Angela identifies market misconduct as an emerging issue in digital finance, with global regulatory bodies like IOSCO prioritizing it in their work.

HKU FinTech is the leading fintech research and education in Asia. Learn more at www.hkufintech.com.

Chương

1. Reflections from a former Singapore regulator on virtual assets (00:00:00)

2. Life as a Regulator: Balancing Innovation and Rules in Singapore (00:01:43)

3. A Mission-Driven Approach to Fighting Fraud and Financial Crime (00:06:26)

4. Crypto’s Journey in a Traditional Financial Sector (00:13:19)

5. How Singapore and Hong Kong are Leading Regulatory Clarity (00:18:14)

6. Tackling Enforcement Challenges in Crypto Regulation (00:21:56)

7. Bridging the Talent Gap in Crypto Compliance (00:27:00)

8. Making SupTech Accessible for Non-Experts (00:30:04)

9. Asia's Role in Global Crypto Crime (00:34:44)

10. Evolving Responses of VASPs to Crypto Crime (00:36:26)

11. Travel Rule Compliance: High Numbers, Real-World Challenges (00:42:47)

12. Using Crypto to work-around sanctions: Lessons from North Korean and other Actors (00:47:00)

13. Leveraging Blockchain Transparency for Asset Recovery (00:53:08)

14. The Allure of Digital Currencies: Liquidity, Anonymity, and Crime (00:58:04)

15. Building a Safer Crypto Future: Advice for Aspiring Professionals (01:01:20)