The central bank and financial regulatory body in Singapore, the Monetary Authority of Singapore (MAS) intends strengthening crypto regulations to prevent Terra-LUNA and Three Arrows Capital (3AC) like crisis.
Moreover, Ravi Menon, managing director of the MAS, on Tuesday said tightening retail investors’ access to crypto will be in focus as the central bank plans more regulatory oversight.
Monetary Authority of Singapore Mulls Tightening Crypto Regulations
The MAS’ managing director Ravi Menon in a speech during the central bank’s annual report on Tuesday said the country will tighten crypto regulations and access to retail investors.
“We will set out how our developmental and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub.”
The move comes after several crypto players criticized Singapore for having less control over crypto companies. Critics claim crypto firms including, TerraForm Labs and Luna Foundation Guard, hedge fund Three Arrows Capital, and crypto lender Vauld were regulated in Singapore.
The Terra-LUNA and Three Arrows Capital contagion caused two consecutive crypto market collapses, giving no way to recover.
Three Arrows Capital filed for bankruptcy last month. Thereafter, the MAS reprimand the company for providing false information and exceeding the limit on its assets under management.
However, Ravi Menon cites the hedge fund stopped managing funds in Singapore before the problems started. In fact, TerraForm Labs and Luna Foundation Guard, as well as, Vauld are not regulated by the MAS.
Singapore has strict rules against bad behavior in the industry. The MAS allowed only 14 firms out of 200 to provide digital assets services in the country. The country is tightening crypto regulations surrounding marketing, licensing local crypto firms providing services overseas, and retail investor protection.
Singapore’s Strict Crypto Regulatory Stance
The Monetary Authority of Singapore earlier warned crypto companies of bad behavior, maintaining a strict crypto stance in many cases. The strict stance had caused many firms to shift to other countries.
The crash of Three Arrows Capital created a domino effect in the crypto industry. Leading to many crypto firms becoming insolvent or filing for bankruptcy.
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