The Monetary Authority of Singapore (MAS) is investigating cryptocurrency-related businesses operating in the city-state ahead of a planned regulatory overhaul.
MAS has sent a questionnaire to the various applicants and holders of its digital payment license, according to anonymous testimonies Bloomberg sources. After sending out the questions over the past month, the authority said responses were expected soon.
Singapore bank launches investigation
With the survey, MAS hopes to assess the interconnectedness and financial strength of cryptocurrency businesses under its jurisdiction. Therefore, he is looking for fairly specific information about their business activity and holdings.
A spreadsheet sent to companies reveals that the regulator is looking for data relating to everything from the main tokens held by companies, and the main lending and borrowing counterparties they have dealt with, to the different amounts lent, and the main tokens staked through decentralized systems. funding protocols.
To better understand the risks associated with initiating a cryptocurrency exchange, MAS also solicits information from local crypto exchanges. Once an exchange receives a coveted digital payment token service license, the regulator wants to understand the necessary processes it will undertake to go live. So far, the regulator has granted just over 10 permits out of nearly 200 applicants.
Crypto Regime Overhaul
The moves come ahead of a planned overhaul of Singapore’s cryptocurrency regulatory regime, as the city-state attempts to mitigate the recent fallout from several bankrupt companies. Having already informed the industry that the scope of the regulations would widen to cover more activities, MAS chief executive Ravi Menon said the tensions would be resolved next week.
“Licensees and applicants are required to notify MAS of any event that materially impairs or impedes the operations of the entity, including any matter that may affect its solvency or its ability to meet its financial, statutory, , contractual or otherwise,” said an MAS. spokesperson.
The city-state’s regulatory regime for cryptocurrencies has recently come under particular scrutiny, due to the recent failure of several entities with key businesses in the city-state. These include the collapse of hedge fund Three Arrows Capital and platforms Zipmex, Hodlnaut and Vauld.
The interconnected collapse of these companies highlighted the lack of extensive risk management rules for digital asset companies in Singapore.
All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.
We would like to thank the writer of this post for this incredible content
Central Bank of Singapore Probes Crypto Outlets Ahead of Regulation
Find here our social media profiles as well as other pages that are related to them.https://metfabtech.com/related-pages/