Singapore in talks on international crypto-investment rules • The Register
The Monetary Authority of Singapore (MAS) has suggested that the city state may soon introduce more rules for cryptocurrency.
The senior minister and minister responsible for MAS, Tharman Shanmugaratnam, answered in the affirmative to a parliamentary question asking whether the governing body intends to implement further restrictions on cryptocurrency trading platforms to prevent “unsophisticated people” from participating in the “very risky” act.
Shanmugaratnam said MAS was “carefully considering” the introduction of additional consumer protection measures. Among the actions being considered is to limit retail participation and control the use of influence on transactions – a practice in which investors borrow capital to make trades, thus strengthening their purchasing power in exchange for greater risk.
“Given the limitless nature of cryptocurrency markets, however, there is a need for regulatory coordination and cooperation globally,” the minister said in his written response to a question put to parliament, adding that the issues were already under discussion at various international standards. MAS participates actively. “
Since 2017, MAS has repeatedly warned retail investors to avoid cryptocurrency. Deputy Prime Minister Heng Swee Keat reiterated this point in May, citing people who recently lost large sums of money and even life savings after the meltdown of the so-called “stablecoin” Luna.
Singapore has already increased the regulation of operators through measures such as requiring licenses and restricting where crypto players can advertise.
And since the use of influence can allow beginners to get over their heads with hefty bets while skipping annoying demands such as collateral, it’s no surprise that the city state that banned chewing gum also wants to regulate crypto.
Shanmugaratnam ended his reply with the following reminder:
As if to prove that MAS’s warning was correct, the same day the minister’s response was published, the Singapore-based crypto-loan company Vauld issued a statement saying it suspended both trading and withdrawals while seeking new investors after facing “financial challenges”. “caused by” volatile market conditions. “
Between June 12, 2022 and July 4, 2022, the company claimed to have experienced customer withdrawals of over $ 197.8 million. Vauld said the crash was “triggered by the collapse of Terraform Labs UST stablecoin, the Celsius network stopped withdrawals and [Singapore-based crypto hedge fund] Three Arrows Capital defaults on its loans. “®
