1 year ago
The Monetary Authority of Singapore (MAS) is introducing proposals to amended modulate the cryptocurrency manufacture successful the aftermath of the bankruptcy of the Singaporean crypto hedge money Three Arrows Capital (3AC).
The cardinal slope of Singapore has issued 2 consultation papers connected proposals for regulating the operations of integer outgo token work providers (DPTSP) and stablecoin issuers nether the Payment Services Act.
Published connected Oct. 26, some consultation papers purpose to trim risks to consumers from crypto trading and amended standards of stablecoin-related transactions.
The archetypal papers includes proposals for integer outgo token (DPT) services oregon services related to large cryptocurrencies similar Bitcoin (BTC), Ether (ETH) oregon XRP (XRP).
According to the authority, “any signifier of recognition oregon leverage successful the trading of DPTs” would effect successful the “magnification of losses,” perchance starring to bigger losses than a customer’s investment.
In the conception 3.20, MAS projected to prohibition DPTSPs from providing retail customers with “any recognition facility,” whether successful the signifier of fiat currencies oregon crypto. According to the regulator, crypto work providers should besides not beryllium allowed to judge immoderate deposits made utilizing recognition cards successful speech for crypto services.
“MAS proposes that DPTSPs should guarantee that customers’ assets are segregated from the DPTSPs’ ain assets, and held for the payment of the customer,” the cardinal slope noted, referring to the caller nonaccomplishment of respective steadfast successful the crypto industry, including 3AC’s insolvency successful June.
Other than that, the MAS besides suggested that DPTSPs should see adopting user tests to measure retail customer’s cognition of risks associated with crypto.
The 2nd consultation insubstantial provides proposals for a regulatory attack for stablecoins successful Singapore, providing a acceptable of concern and operational requirements for stablecoin issuers.
In the conception 4.21 of the document, MAS projected to restrict stablecoin issuers from lending oregon staking single-currency pegged stablecoins (SCS), arsenic good arsenic from lending oregon trading different cryptocurrencies.
“This is to ringing obstruction and mitigate risks to the SCS issuer successful lieu of a broad risk-based superior regime. Such activities tin inactive beryllium conducted from different related entities,” the consultation insubstantial reads.
The regulator besides projected to present a minimum basal superior of $1 cardinal oregon 50% of yearly operating expenses of the SCS issuer. The superior should beryllium held astatine each times and see liquid assets, MAS added.
Related: HK and Singapore’s mega-rich are eyeing crypto investments: KPMG
The regulator invited funny parties to taxable their comments connected the proposals by Dec. 21, 2022.
As antecedently reported, the crypto wintertime of 2022 has go peculiarly harmful for cryptocurrency lenders arsenic galore specified firms became incapable to wage retired their obligations owed to a monolithic marketplace drop. Some Bitcoin analysts are assured that crypto lending tin inactive survive this carnivore marketplace but they request to lick issues related to short-term assets and short-term liabilities.
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