Monetary Authority of Singapore (MAS) is under consideration New regulations To protect individual investors after the crypto market crash led to the collapse of some crypto companies.
According to regulatory agencies, the new rules under consideration include “Rules on Restricting Retail Participation and Using Leverage When Trading in Cryptocurrencies.”
MAS continued that due to the “boundary nature” of its market, there is a need for global collaboration to better monitor the crypto industry.
Regulators have also taken some of the previous efforts to protect private investors from the crypto industry, such as warning that crypto is not for private investors and limiting crypto advertising that does not emphasize the risk of such investments. Rehashed.
Cryptocracy of Singapore-based crypto company in the market
The new regulatory warnings are not surprising given the role Singapore-based companies such as Terraform Labs and Three Arrows Capital played in the crypto market crash.
MAS has rebuked Three Arrows Capital (3AC) for providing false information about its investment beyond the limits of its assets under management. Regulators are investigating whether hedge funds have violated other rules.
Citizens involved have submitted police reports to Terraform Labs, the developer of the crashed Terra Token, LUNA, and UST.
Vauld, the country’s crypto lender, has suspended its withdrawal due to liquidity issues. The company is considering restructuring and is hiring an advisor.
Singapore mixed crypto signal
Singaporean authorities are walking the narrow line between consumer protection and openness to cryptocurrencies.
Sopnendu Mohanty, Chief FinTech Officer, MAS on LinkedIn PositionHe praised the leadership of cryptocurrency companies such as Binance, Crypto.com and Ripple, saying, “We are committed to building secure and sustainable innovations that solve real problems.”
Meanwhile, strict regulatory demands have pushed several cryptocurrency companies out of the country. Singapore licenses only 14 companies to operate from approximately 200 applications.