The Financial Authority of Singapore (MAS) on Wednesday printed two session papers proposing regulatory frameworks to cut back buyers’ danger in crypto buying and selling and help stablecoins for transactions. The measures together with client entry, enterprise conduct, and know-how dangers are a part of the Fee Providers Act. The MAS bans retail buyers from utilizing bank cards and borrowing funds to buy cryptocurrencies.
Singapore’s Central Financial institution Proposes Crypto Buying and selling, Stablecoins Measures
In a press release on October 26, The Financial Authority of Singapore introduced proposed measures to cut back crypto buying and selling dangers for retail buyers. Furthermore, regulate the issuance of stablecoins pegged to a forex.
The MAS considers cryptocurrencies necessary within the digital asset ecosystem and received’t ban them. Subsequently, the MAS requires crypto buying and selling suppliers corresponding to crypto exchanges to make sure enterprise conduct and satisfactory danger disclosure.
The crypto service suppliers should prohibit retail buyers from utilizing bank cards and leverage for crypto buying and selling. Additionally, the service suppliers will deal with the segregation of shoppers’ property and mitigate client complaints. On the know-how dangers, the MAS desires firms to keep up the excessive availability and recoverability of essential programs.
Moreover, the MAS will regulate stablecoins as a medium of alternate within the digital asset ecosystem. It goals to develop the regulatory framework for stablecoins to make sure a excessive diploma of worth stability. Furthermore, stablecoin issuers are required to publish a white paper with all particulars corresponding to redemption rights.
Curiously, well-regulated and securely backed stablecoins shall be most well-liked by the MAS. Additionally, banks can concern stablecoins with out further reserve backing and prudential necessities. The final date for feedback on the proposals is December 21.
Ms Ho Hern Shin, Deputy Managing Director of the MAS, stated:
“The 2 units of proposed measures mark the subsequent milestone in enhancing Singapore’s regulatory strategy to foster an modern and accountable digital asset ecosystem.”
Singapore’s Strict Stance on Crypto
Whereas the MAS considers cryptocurrencies important for the digital asset ecosystem, the current crash of Singapore-based crypto firms led to a strict stance on crypto. The proposed laws additionally forestall staking and lending to generate yields.
The crash of crypto corporations corresponding to Three Arrows Capital, Terraform Labs, Zipmex, Vauld, and Hodlnaut triggered Singapore to introduce a stringent crypto regulatory framework. Just lately, Coinbase and Blockchain.com acquired licenses in Singapore.
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