Singapore Announces Tougher Regulation Of Cryptocurrencies

The Singapore authorities will expand the regulation of cryptocurrencies to cover more activities to limit the risks to investors. Bloomberg reports it.

The Monetary Authority of Singapore (MAS) will hold consultations on the proposed measures in September-November, said the head of the department, Ravi Menon. 

He added that the updated rules might include tightening access to cryptocurrencies for retail investors.

“In the future, in line with global requirements, we are also going to expand the scope of regulation to cover more activities. So, players who use some of these operations but are not currently covered could very well fall under control,” Menon said.

In May, the collapse of the Terra ecosystem, whose key participants (TerraForm Labs and Luna Foundation Guard) declared Singapore as the primary jurisdiction, became a severe shock to the crypto industry. The bankrupt hedge fund Three Arrows Capital connected its activities with the island city. In July, the country-based crypto lending platform Vauld suspended operations.

Regarding these companies, Menon noted that none were authorized to operate under the existing digital asset service provider licensing system. According to the publication, out of almost 200 applications, MAS approved only 14.

The head of the department praised the potential of the underlying blockchain technology, emphasizing that retail investors should avoid cryptocurrencies.

According to him, MAS will hold a seminar in August to outline its position in the supervision of the crypto market.

“We will lay out how our development and regulatory approaches work in harmony with the goal of transforming Singapore into an innovative and responsible digital asset hub,” Menon said.