Singapore authorities will broaden cryptocurrency regulation to cover more activities in order to curb investors’ risks. Bloomberg reports.
The Monetary Authority of Singapore (MAS) will conduct consultations on the proposed measures in September–November, said Ravi Menon, the MAS chief.
The updated rules could include tightening access to cryptocurrencies for retail investors, he added.
“In the future, in line with global requirements, we also intend to expand the regulatory scope to cover more activities. Thus, players who use some of these activities but are not currently covered could well come under the regulator’s oversight,” said Menon.
In May, the collapse of the Terra ecosystem, whose key participants (TerraForm Labs and Luna Foundation Guard) identified Singapore as the main jurisdiction. The bankrupt hedge fund Three Arrows Capital, which did business with the city-state, was connected. In July suspended operations the country-based crypto-lending platform Vauld.
Regarding these companies, Menon noted that none had permission to operate under the existing licensing regime for digital-asset service providers. According to the publication, out of nearly 200 applications MAS approved only 14.
The head of the agency praised the potential of the underlying blockchain technology, emphasising that retail investors should avoid cryptocurrencies.
He said that in August MAS will hold a seminar to outline its stance on crypto-market oversight.
“We will spell out how our approaches to development and regulation will work in harmony to transform Singapore into an innovative and responsible hub for digital assets,” said Menon.
Earlier in July, MAS signaled a possible tightening of cryptocurrency regulation.