Singapore to tighten regulation of cryptocurrencies

The decision was made against the background of the collapse of several companies with registration within the country

20.07.2022 - 06:45

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What’s new? The Singapore authorities plan to tighten regulation of the cryptocurrency market to protect investors from risks. The new rules could come into force in the fall of 2022, following a consultation by the Monetary Authority of Singapore (MAS). This is reported by Bloomberg.

News on the Bloomberg website

What is known about the regulator’s plans? MAS intends to expand the list of cryptocurrency market activities to be regulated. The head of the authority Ravi Menon stressed that “players who are doing some of these activities but are currently not caught may well be caught.”

Information about the plans to tighten control over the sector came amid the collapse of several crypto projects at once. These include the Terra blockchain ecosystem, the hedge fund Three Arrows Capital (3AC), and Vauld, a blockchain platform that was registered in Singapore but was not licensed as a digital asset service provider by the MAS.

In April, the Singapore Parliament passed a law requiring cryptocurrency companies headquartered in the country that only do business overseas to be licensed. The stricter rules stemmed from the fact that, at the time, Singapore’s crypto companies were not regulated for anti-money laundering and counter-terrorism financing (AML/CFT).

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