Singapore’s Monetary Authority is currently weighing the possibility of stricter crypto regulations. This was contained in a letter sent by the regulator to the country’s parliament on Monday.
A Legislative Move
According to the Minister in Charge of MAS, the regulator wants more retailer protection. Tharman Shanmugaratnam said MAS is concerned about the plight of retail participants. They seem to be the less catered for when push comes to shove.
He said further that the regulation might go further to include participation. The regulator might be putting a limit. It might even place rules on using leverage when transacting cryptocurrency deals.
The letter gives a hint about the plans of the Monetary Authority of Singapore. It plans to implement stricter crypto policies altogether. MAS had a crackdown on crypto marketers early in the year.
Furthermore, the regulator has introduced a licensing phase into the cryptocurrency business. Fairly, MAS mentioned its commitment to deal decisively with bad actors in the sector. A number of media outlets had reported what seemed like a threat.
The 3AC Woes
Three Arrows Capital has recently borne the brunt of the regulator. MAS accused the firm of lying about its assets to the regulator.
The Monetary Authority reprimanded 3AC on the 30th of June over official misrepresentation. MAS said the hedge fund provided false information and exceeded the permissible threshold. There is a benchmark for assets under management MAS permits for crypto service providers.
MAS gave registration status to Three Arrows Capital in 2013. One of the conditions surrounding it is it does not exceed $250 million in assets.
But in a publication, MAS said the hedge fund has broken its AUM agreement. The regulator put the date between July 2020 to September 2020. Also between November 2020 and August 2021.
MAS also called 3AC to order for not notifying it about changes of directors. The regulator is equally aggrieved that the shareholdings changed and it wasn’t carried along. 3AC did not notify MAS of its offshore shareholders.
The Road to Insolvency
MAS stated that it acknowledges that the hedge fund might no longer be solvent. It is, therefore, considering if there are further breaches it has committed.
This is just a few days after a court put Three Arrows Capital into liquidation. The court in the British Virgin Islands appointed Teneo to handle the liquidation process. Teneo is a financial advisory company.
As the liquidation handler, Teneo’s task is to guide 3AC’s assets and know its creditors.
In addition, the hedge fund has gone ahead to file for bankruptcy in the US. The fifteen pagers were filed in New York’s Southern District last week Friday. This development occurred after the British Virgin Islands’ judgment.
It is said that the US filing was done to aid lawyers in charge of the liquidation. They would be able to effectively protect 3AC assets in the US.
Russell Crumpler, one of the liquidators, said that 3AC is equally in an arbitral proceeding.
Source: https://crypto.news/3ac-singapore-23-crypto-regulations/