In preparation for more extensive crypto regulation, the Monetary Authority of Singapore is currently asking several questions from crypto companies operating within its borders.
A Bloomberg report reportCrypto firms may find it difficult to operate free of regulation under the proposal.
Singapore’s government has long boasted that it is a safe and secure place to trade cryptocurrency with transparent regulations. The narrative is gradually changing.
The MAS is now interested in the many events that have been triggered by the long crypto winter. This includes the bankruptcy of some Singapore-based crypto firms and the loss or investments in crypto assets.
The source of the Bloomberg report is unknown. However, it was confirmed by the Singaporean authorities that questionnaires were sent out to licensed crypto companies asking for information about their token reserves, connections to other lending firms, as well as the tokens staked through DeFi protocols.
The MAS’s current regulation only covers crimes such as money laundering and fraud. However, this new development will see the introduction of new and amended regulations. cryptocurrencies in Singapore.
A spokesperson for MAS noted that both licensed and applicant cryptocurrency vendors in the country should report to the MAS about any challenges they are facing so that they can salvage the situation before it becomes serious.
Hagen Rooke, a Singaporean lawyer, said that the MAS has had to reconsider its crypto regulations due to the many uncertainties in the market. He added that “it is possible that measures under consideration include requirements for MAS-regulated firms to obtain collateral when lending crypto,” so as to minimize risks remarkably.
While trading cryptocurrency involves lots of risks, Singapore’s financial watchdog, MAS has often deployed various measures to ensure a safe haven for crypto users within its borders.
The regulator was established in July Announcement Tharman Shamugaratnam, its senior minister, announced that the government will take stricter measures to prevent cryptocurrency traders from entering its territory.