The Financial Authority of Singapore (MAS) is contemplating new rules to guard retail traders after the crypto market crash led to the collapse of a number of crypto companies.
In line with the regulator, the brand new guidelines being thought-about embody “putting limits on retail participation, and guidelines on using leverage when transacting in cryptocurrencies.”
MAS continued that there’s a want for international collaboration to raised police the crypto trade because of the ‘borderless nature’ of its market.
The regulator additionally rehashed a few of its earlier efforts to guard retail traders from the crypto trade, like warnings that crypto isn’t for retail traders and the restriction of crypto advertisements that don’t emphasize the dangers of such funding.
Singapore-based crypto corporations available in the market crash
The brand new warning by the regulator is unsurprising contemplating the position Singapore-based corporations like Terraform Labs and Three Arrows Capital performed within the crypto market crash.
MAS reprimanded Three Arrows Capital (3AC) for exceeding the restrict for belongings underneath administration and offering false details about its operations. The regulator is investigating whether or not the hedge fund breached different guidelines.
A involved citizen filed a police report towards Terraform Labs, the builders of the crashed Terra tokens, LUNA and UST.
Vauld, a crypto lender within the nation, suspended withdrawals as a consequence of liquidity points. The agency has employed advisers because it considers restructuring.
Singapore’s combined crypto alerts
Authorities in Singapore are strolling the skinny line between shopper safety and openness to crypto.
Sopnendu Mohanty, MAS’ chief fintech officer, in a LinkedIn put up, praised the management of crypto companies like Binance, Crypto.com, and Ripple, saying they’re ‘absolutely dedicated to constructing a safe and sustainable innovation fixing actual issues.’
In the meantime, the stringent regulatory calls for of the authorities have pushed a number of crypto companies overseas. Singapore has licensed solely 14 corporations to function out of virtually 200 functions.