Singapore’s financial regulator considers more crypto restrictions and even places limits on retail participation for investors and also introduces rules on the use of leverage for crypto transactions so let’s have a closer look at today’s latest cryptocurrency news.
The monetary authority of Singapore, Singapore’s financial regulator has been considering adding restrictions that can affect how retail investors handle crypto according to ministers. According to the parliamentary records, Singapore senior minister and MAS chair Tharman Shanmugaratnam said the financial regulator could consider placing limits on retail participation for the investors and to introduce rules on the use of leverage for transactions. He also called for regulatory clarity among these financial regulators around the world given the nature of crypto markets.
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
The MAS barred crypto service providers from marketing in public spaces and was behind regulations to shut down crypto ATMs in Singapore which shows crypto trading being portrayed in a manner that can trivialize the risks. According to the MAS, the country’s Payment Services Act can empower the regulator to impose more restrictions on crypto service providers and ensure better consumer protection but also maintain financial stability and protect the efficacy of monetary policy.
The Financial watchdog said that these recent events such as the extreme volatility in the prices of major cryptocurrencies, only outline the risks of crypto investments. The MAS reprimanded Three Arrows Capital for providing false information and surpassing assets under the management threshold. The Singapore-based company could be facing liquidation as it failed to meet margin calls from lenders. Amid the marekt downturn, the MAS continues to give a green light to companies that handle digital assets in Singapore, and in June, the regulator granted Crypto.com approval which allows the exchange to provide payment services in the country.
Crypto companies like Bitstamp Limited, Gemini Trust, and Coinbase Singapore were all granted exemptions for having a licnese in Singapore while Binance announced more plans to shutter its operations in the country.
As recently reported, The Monetary Authority of Singapore issued a notice today that the crypto fund Three Arrows Capital provided the regulator with false information. 3AC opened an entity in the British Virgin Islands and according to Singapore’s MAS “novated the management of the fund to an unrelated offshore entity.