Entrepreneurs in the encryption industry and even all fintech entrepreneurs must remember that fintech is the organic combination of finance and technology.The good work methods of management and internal control are the way of stable and long -lasting success.
In 2022, the Federal Reserve continued to raise interest rates, and global liquidity tightened, which made people unable to easily obtain low -credit to conduct high -risk cryptocurrency transactions, and the crypto industry began to enter the bear market.Beginning in May last year, the crypto industry has continuously experienced large institutions such as Terra, Sanjian Capital, CelSius, Voyager, FTX, Blockfi, Genesis and other large institutions., Suddenly fell to less than $ 1 trillion today.
External factors do cause a more difficult operating environment, but the lack of corporate governance, risk management and internal control in the internal company of encrypted industry, and even the manipulating, fraud and fraud by the founder or manager of the person or manager, which leads to this series of seriesThe main reason for the frequent encryption incident.
For example, CELSIUS and Voyager of cryptocurrency lenders are over -leveraged, high -risk bets on the so -called decentralized financial products, and a large amount of withdrawal of users' withdrawal after Terra's incidents lead to liquidity issues.Risk of liquidity.Three Arrow Capital obtained billions of dollars of loans without providing audited financial reports, which is the absence of the internal control of the so -called "third defense" in the traditional bank.The related transactions between FTX and the investment fund company related to FTX founder Frieda Research are one of the largest taboos of corporate governance.
We often hear that innovators in the encrypted industry shouted the slogan of "decentralization". To defeat the traditional financial institutions they think they are hegemony, such as banks such as banks, but Ironics are that many cryptocratric operators eventually sell dog meat to sell dog meat.It still operates in a centralized way, or even manipulates the market.What's even more unfortunately, these involved encrypted operators did not learn and absorb traditional financial institutions in terms of governance, air ducts and internal control, which has accumulated accumulated in the golden family jade law for many years.
Therefore, the encrypted industry entrepreneurs and even all fintech entrepreneurs must remember that fintech is the organic combination of finance and technology.The good work method of internal control is the way to operate stable and lasting success.
Strengthen the entry review and due responsibility survey
It is estimated that investors have invested more than 1.8 billion US dollars (about S $ 2.4 billion) in the past three years, while the debt of FTX owed 100,000 creditors was between 100 billion and $ 13 billion.Among them, investment funds may be turned into black and impaired to zero.The failure of the FTX this time is quite suddenly and shocking, besides the expectations of many investors and creditors.This shows that investors and creditors are lacking in their responsibility investigations by such technology startups, or they are not complete and comprehensive.
Due to the relatively open and inclusive policies of the encryption industry, Singapore has attracted many overseas cryptocurrency companies to start a local business in the past two or three years. The blockchain and Web3 industry activities are also very vigorous.However, with the arrival of the encrypted cold winter, many cryptocurrency companies have mines, some of which are not well reputable, or the problem of management capabilities, or there is a problem of fraud, some are also related to the Singapore team.Influence.
On the other hand, due to Singapore's political stability, free capital flow, sound and transparent legal system, sufficient financial talents, and rich regional investment products. Recently, many global wealthy and high -net -worth individuals have come to Singapore to set up a family office orInvestment companies, managing family wealth, investment and inheritance plans.The lesson of FTX, while welcoming and encouraging foreign talents and capital entrepreneurship or investing, we need to review the prudent requirements of the entrance threshold, strengthen the effectiveness of the responsibility investigation, and strengthen the vigilance and execution ability of relevant government departments.Make sure foreign bad elements cannot take the opportunity to use this science and technology entrepreneurial and wealth management upsurge to sneak into Singapore to maintain the high -level international reputation and credibility of Singapore's long -term efforts.
When considering risk or entrepreneurial investment, generally, startups may not have much performance for review and reference. In addition to the feasibility assessment of the industry prospects and project paper, the founder's morality, leadership ability and leadership ability and leadership ability and leadership ability and leadership ability and leadership ability and leadership abilityThe management and operation ability of the team is very critical.Similarly, when reviewing the admission application of the family office or investment company, as always, we must continue to strictly control the legality and legitimacy of the source of wealth, and we must not compromise!
Singapore's fintech and wealth management industry today, such as the sky, a large number of overseas talents and capital influx. It is precisely at this time that we cannot be complacent and proud.The "Wild West West" of the new technology new clothing, or the "refuge" that can make ghosts push.
In view of this, we need to keep pace with the times, update and strengthen the tools and methods of responsible investigation.
For example, in addition to the information provided by the applicant, in terms of evaluating the morality and reputation of the applicant, we must use technology and networks to seek multiple channels, including formal or informal channels, multiple languages to search for large areas to large areasInformation about public, official, and private spaces, such as the language of the applicant's source country, conducting search, public opinion survey of related networks in the country, and even locals that applicants have met to understand the situation.
Although a person's morality is not easy to determine accurately, we must do our best to make comprehensive and complete admission evaluations, and continue to observe and investigate afterwards, and even be in place with administrative intervention when necessary.We pursue a free market economy, so market access is a key goalkeeper to ensure the health and fairness of the free market economy operation.
(The author is the dean of the guest professor of the National University of Singapore and the visiting professor of Nanyang University of Technology Li Bai Financial College)
