The Financial Authority of Singapore (MAS) has began taking measures to organize for brand new cryptocurrency rules addressing the continuing liquidity disaster and withdrawal points.
Singapore’s central financial institution has despatched detailed questionnaires to some candidates and holders of the MAS’ Digital Fee Token licenses, Bloomberg reported on Friday.
Despatched over the past month, the questionnaires had been reportedly searching for “extremely granular data” about enterprise exercise and holdings by examined crypto corporations.
The checks had been targeted on corporations’ monetary stability and interconnection, with questions together with prime tokens owned, prime lending and borrowing counterparties, the quantity loaned and prime tokens staked through decentralized finance protocols.
Citing individuals accustomed to the matter, the report notes that corporations had been anticipated to reply promptly. The MAS has issued 10 licenses to crypto corporations in Singapore thus far, together with exchanges like Crypto.com and DBS Bank’s brokerage arm DBS Vickers. That’s fairly a small fraction out of almost 200 reported corporations which have utilized for the license.
The newest regulatory motion in Singapore apparently goals to accentuate the scrutiny on crypto corporations amid upcoming new rules for the trade. In mid-July, MAS managing director Ravi Menon disclosed that the monetary watchdog was working on a regulatory framework to address “shopper safety, market conduct, and reserve backing for stablecoins” within the subsequent few months.
The MAS particularly pointed at blind spots within the present crypto rules in Singapore, noting that digital fee token service suppliers are usually not topic to risk-based capital or liquidity necessities. In addition they are usually not at the moment required to safeguard buyer funds or digital tokens from insolvency dangers. As an alternative, rules principally concentrate on cash laundering and terrorism financing fisks in addition to know-how dangers.
The MAS didn’t instantly reply to Cointelegraph’s request for remark. This text will likely be up to date pending new data.
Associated: Singaporean financial watchdog to consult public on stablecoin regulation
Singapore’s upcoming new regulatory framework for crypto is available in response to the continuing liquidity disaster and the related withdrawal points amid a bear market. Three Arrows Capital (3AC), the troubled Singapore-based crypto hedge fund, went bankrupt throughout this crypto winter, failing to meet margin calls in mid-June.
In an affidavit in mid-August, 3AC co-founder Su Zhu stated that the corporate shifted its registration to the British Virgin Islands in September 2021 after having beforehand operated out of Singapore. He additionally reportedly accused the liquidators of deceptive authorities about 3AC’s construction.
