Singapore’s regulator requests data on the activities of crypto companies

What’s new? The Monetary Authority of Singapore (MAS) has begun preparations for the implementation of new rules for regulating cryptocurrencies. MAS sent out questionnaires to crypto companies containing questions about their activities and assets. The survey aims to assess the financial stability of companies and their interconnectedness. The regulator also asked for data on the largest token holders, counterparties providing loans and credit, the amounts of loans, and staked assets. Representatives of some firms reported that they were expected to respond promptly, Bloomberg writes, citing its own sources.

Bloomberg’s material

What else does the outlet report? The new measures come ahead of anticipated changes to cryptocurrency regulation in Singapore to limit the impact of crypto company collapses and risks to retail investors due to market volatility. The information about plans to tighten control over the sector came amid the collapse of several projects at once: the Terra blockchain ecosystem, the hedge fund Three Arrows Capital (3AC), and the Vauld lending platform, which were registered in Singapore but were not licensed digital asset service providers by MAS.

A MAS spokesman told Bloomberg reporters that licensees and applicants must notify the agency of any events that significantly impede the organization’s operations, including any issues that may affect its solvency or ability to meet its financial, statutory, contractual, or other obligations. MAS cannot share details of transactions with individual firms, citing confidentiality, the spokesman added.

So far, the regulator has issued more than ten approvals to crypto companies that have applied for services related to digital assets, only a fraction of nearly 200 applicants.

Earlier, the Commodity Futures Trading Commission (CFTC) along with the US Securities and Exchange Commission (SEC) submitted a proposal that would require hedge funds with over $500 million in assets under management (AUM) to report risks related to digital assets. So far, the proposal has been submitted for public discussion.