Monetary Authorities in Singapore (MAS) are heating up the crypto industry in the country. MAS is questioning the crypto lenders to share detailed documents about their business activities.
The Central Bank is planning to modify the crypto regulation policies clamping down on the risks after a series of business failures. The market participants have witnessed many crypto lenders falling apart in pieces. The change in cryptocurrency regulations will address the current liquidity crisis and withdrawal issues.
The Monetary Authority of Singapore – Central Bank of Singapore – has questioned several applicants and holders of the MAS Digital Payment Token Licenses. The reports also convey that the questionnaires sent to the companies request highly filtered information. The information must include the business activity logs along with all the details regarding the holdings.
Crypto Lenders Under Investigation
The spokesperson mentioned in a report that the summoned information from the crypto lenders added all the required details. The details included top tokens, details about lending and borrowing counterparties, and also the loan amount via decentralized mediums.
The Singapore Monetary Authorities is aiming to create rigid safeguards protecting retail customers. Authorities are making keen moves to consult the public for stablecoin regulation.
At present, the Singapore Authorities have issued about ten licenses to crypto firms in Singapore. The list of exchanges includes Crypto.com, DBS Banks’ Brokerage arm DBS Vickers. This is just a gist of all the 200 reports which were applied for the license.
MAS strongly thinks that the crypto sphere in Singapore lacks some areas that need new regulations. Crypto exchanges for lending and borrowing services undergo liquidity and capital requirements.
Most of the regulations are concerned with countering money laundering and terrorism financing. The crypto regulators have focused truly on these areas leaving aside customer protection. However, in the current market scenario, the focus must be on enhancing the customer experience.
In such a time frame where the crypto market is falling apart the newly regulated crypto framework may turn the pages for inside-out.
Source: https://www.thecoinrepublic.com/2022/08/27/amid-cryptoquakes-singapore-plans-to-broaden-crypto-regulations/