Regulators in Singapore are tightening their grip over crypto buying and selling actions within the nation. On Monday, August 29, the chief of Singapore’s central financial institution mentioned that the town is contemplating new measures to make crypto buying and selling much more troublesome for retail traders.
In a seminar on Monday, Ravi Menon, managing director of the Financial Authority of Singapore (MAS), said:
“Including frictions on retail entry to cryptocurrencies is an space we’re considering. “These could embrace buyer suitability checks and proscribing the usage of leverage and credit score amenities for cryptocurrency buying and selling”.
He additional famous that retail traders have been “irrationally oblivious” concerning the dangers related to crypto buying and selling. Earlier this yr in January, the MAS issued pointers to restrict crypto buying and selling service suppliers from selling their providers to the general public. This was a transfer to defend retail traders from the volatility within the crypto house.
MAS Making a Transfer on Crypto Rules
Addressing the continued liquidity disaster and withdrawals, particularly with the current case of troubled hedge fund Three Arrows Capital, the MAS is taking new measures to deliver crypto laws into the nation.
Final week, the central financial institution of Singapore despatched detailed questionnaires to all companies holding MAS’ Digital Fee Token licenses. As per the Bloomberg report, the objective was to acquire “extremely granular info” concerning enterprise exercise and holdings of examined crypto companies.
The MAS goals to examine the monetary stability and interconnection amongst crypto companies. The bankrupt hedge fund Three Arrows Capital has given a significant blow to the crypto markets this yr.
The MAS is seeking to search some essential particulars from crypto companies resembling prime lending and borrowing counterparties, prime tokens owned, prime tokens staked through decentralized finance protocols, and the quantity loaned.
Final month in July, MAS chief Ravi Menon additionally mentioned that they’ve been engaged on a regulatory framework. This framework will tackle “client safety, market conduct, and reserve backing for stablecoins”.
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