Singapore Monetary Authority Considers Stricter Requirements In Crypto Business

Singapore Senior Minister and MAS Chairman Tharman Shanmugaratnam (photo: twitter @Diop_IFC)

JAKARTA - The Monetary Authority of Singapore (MAS), has been "carefully considering" adding restrictions that could affect the way retail investors handle cryptocurrencies. This was revealed by one of the senior ministers of the neighboring country's government.

According to a parliamentary note published on Monday, July 4, Singapore's senior minister and MAS Chair Tharman Shanmugaratnam, said the financial watchdog could consider "putting limits on retail participation" for crypto investors as well as introducing rules on the use of leverage for crypto transactions.

Shanmugaratnam also called for regulatory clarity among financial regulators worldwide, “given the borderless nature of the cryptocurrency market.”

MAS today reprimanded Three Arrows Capital Pte. Ltd. for providing false information to MAS, and exceeding the assets under management threshold allowed for a registered fund management company. #enforcement #regulations

Read in full: https://t.co/LXWKTCTymO

— MAS (@MAS_sg) June 30, 2022

In January, MAS banned crypto service providers from advertising or marketing in public spaces. MAS, is also behind regulations to close crypto ATMs in Singapore. They think it's the service that has shown that "trading of cryptocurrencies is described in a way that underestimates the risks."

According to MAS, Singapore's Payment Services Act has empowered regulators to impose additional restrictions on crypto service providers. This is to ensure better consumer protection, and to maintain financial stability and maintain the efficacy of monetary policy.

The financial watchdog said that “recent events”, which likely refer to extreme volatility in the prices of major cryptocurrencies including Bitcoin (BTC), highlight the risks of crypto investing.

On June 30, MAS rebuked Three Arrows Capital for allegedly “providing false information and exceeding assets below the management threshold.” The Singapore-based company may face liquidation amid reports it failed to meet margin calls from its lenders.

Amid the market downturn, MAS continues to consider giving the regulatory green light to companies handling digital assets in Singapore. In June, financial regulators granted Crypto.com in-principle approval, allowing the crypto exchange to provide certain payment services in the country.

Crypto companies including Bitstamp Limited, Coinbase Singapore and Gemini Trust have been granted exemptions from licensing in Singapore. While Binance announced plans to close its operations in the country in February next year.