The Monetary Authority of Singapore, also known as MAS, has asked several crypto businesses to submit their data concerning their business activities. As per the recent reports, the Central Bank of Singapore will make several changes and bring new crypto rules and regulation policies due to the recent collapse of several crypto hedge funds, such as Vauld.
The amendments that will be made in the regulations by the government will help them address several issues, such as the liquidity crisis and withdrawal issue during the market downfall, and many more.
On the other hand, MAS has sent a detailed questionnaire to some applicants and the holders of MAS’s digital payment licenses. It mainly asked for vital information about their company activities and holdings.
Disturbing the financial stability and interconnection of a crypto firm
MAS clarified that they are concentrating on creating more robust safeguards to protect their retail customers. It also keeps consulting their public on the principles of the stablecoins in their country and announced that the firms are requested to reply to the given questionnaires asap; otherwise, problems may occur.
Also, the present MD of the Central Bank Of Singapore said that the financial watchdogs are working on a new regulatory framework that will help them address customer protection, as well as reserve backing for the stablecoins.
Areas that have scope for new rules
As per MAS, some existing regulations in specific areas require amendments. Also, the service providers of crypto payments usually undergo risk-based capital, which clears the fact that they are often required to protect the money of their customers, or these digital assets tokens form going insolvent too.
Presently, most crypto regulations that are imposed focus on terrorism financing and several other aspects. However, when these matters get the required attention, customer protection will require more attention to benefit the users.
As per the reports, the new framework built by the financial watchdogs for cryptocurrencies will change everything as it is coming after the withdrawal issues in exchanges in the current situation.
What are your thoughts on the recent regulations of the Singapore government over crypto? What changes do you think they require the most? Let us know in the comments below. And, if you found our content informative, do share it with your family and friends.