The Monetary Authority of Singapore (MAS) is contemplating new laws to protect retail investors after the crypto market crash led to the collapse of a number of crypto companies.
According to the regulator, the brand new guidelines being thought of embody “placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”
MAS continued that there’s a want for international collaboration to higher police the crypto business due to the ‘borderless nature’ of its market.
The regulator additionally rehashed a few of its earlier efforts to protect retail investors from the crypto business, like warnings that crypto just isn’t for retail investors and the restriction of crypto adverts that don’t emphasize the dangers of such funding.
Singapore-based crypto firms out there crash
The new warning by the regulator is unsurprising contemplating the position Singapore-based firms like Terraform Labs and Three Arrows Capital performed within the crypto market crash.
MAS reprimanded Three Arrows Capital (3AC) for exceeding the restrict for belongings beneath administration and offering false details about its operations. The regulator is investigating whether or not the hedge fund breached different guidelines.
A involved citizen filed a police report in opposition to Terraform Labs, the builders of the crashed Terra tokens, LUNA and UST.
Vauld, a crypto lender within the nation, suspended withdrawals due to liquidity points. The agency has employed advisers because it considers restructuring.
Singapore’s combined crypto indicators
Authorities in Singapore are strolling the skinny line between shopper safety and openness to crypto.
Sopnendu Mohanty, MAS’ chief fintech officer, in a LinkedIn submit, praised the management of crypto companies like Binance, Crypto.com, and Ripple, saying they’re ‘fully committed to building a secure and sustainable innovation solving real problems.’
Meanwhile, the stringent regulatory calls for of the authorities have pushed a number of crypto companies overseas. Singapore has licensed solely 14 firms to function out of just about 200 purposes.