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The Central Bank of Singapore asks for feedback on the ban on crypto-emphasis
One proposal aims to stop small investors from buying crypto with credit cards and acting with leverage stable coin emitters should also control the control of money laundering and terrorist financing, the MONETARY AUTHORITY OF SINGAPORE (MAS), the central bank of the country, is looking for public feedback on the proposed measures to intensify the crypto and Stablecoin policy after the spectacular breakdown of Terra. In two consultation papers published on Wednesday, MAS asks for feedback on a number of topics related to digital assets. It is the largest series of suggestions that the country has designed since 2019. The MAS, the most important thing at the same time ...
The Central Bank of Singapore asks for feedback on the ban on crypto-emphasis
- A proposal aims to prevent small investors from buying crypto with credit cards and acting with leverage
- StableCoin issuers would also have to improve controls to combat money laundering and terrorism financing
The Monetary Authority of Singapore (MAS), the country's central bank, is looking for public feedback on the proposed measures to intensify the crypto and stablecoin policy after the spectacular collapse of Terra.
in two Consultation Paper Published on Wednesday, MAS asks for feedback on a number of topics related to digital assets. It is the largest series of suggestions that the country has designed since 2019.
The MAS, which is also the most important financial supervisory authority, raises a number of restrictions on providers of digital payment services, namely stock exchanges, including the ban, to offer incentives for retail customers.
This step would strengthen the existing regulations that were introduced at the beginning of this year when the MAS prohibited service providers to advertise or advertise or advertise their own websites.
mas also searches for comments on proposed restrictions on debt-financed and levered crypto transactions to prohibit providers accepting credit cards. The bank even issues a complete ban on the levered trade for private customers.
Effective measures to protect private keys and to store customer crypto are examined, with the focus on ensuring that only an employee has access to customer funds.
Singapore regulatory tightening follows the saga of the now insolvent crypto hedge fund company Three Arrows Capital, which was headquartered in the island city state.
At the beginning of this year it became known that some of the largest lenders in the industry, including Celsius Network and Voyager Digital, had engagements in the fund, as this suffered from his own poor investment decisions, including in the imploded terra ecosystem.
Therefore, the MAS suggests that the providers introduce appropriate risk management controls and to separate customers' assets in bankruptcy and hardship for certain companies.
The appointment of an independent trustee for all service providers is now being discussed for a period of four weeks.
The Central Bank of Singapore could strengthen the local crypto crypticity
MAS intends to work out a separate category for SCS emitters as part of the state payment service Act that prescribes that issuers whose tokens exceed $ 5 million require a license.
The rules would not necessarily apply to the largest stable coin companies in the crypto area such as Tether and Circle, since both companies are registered outside Singapore.
The best-known stablecoin that is linked to the Singapore dollar, XSGD, has a market capitalization at 53 million US Circle together supervise more than $ 110 billion in a circulating offer.
The MAS makes comments on whether there could be reasons to extend their regulatory reach to stable coins that are output elsewhere, although it is unclear how exactly that would look.
In any case, regulated SCS issuers in Singapore have to meet the existing requirements for money laundering and terrorism financing as well as technology and cyber risk management that currently applies to all regulated payment service providers.
In addition, the regulatory authority would like to have regulated banking companies with sufficient legal options in order to output their own stable coins. The MAS continues to pay attention to the treasuries of stable coin reserves for both institutions and for non-banking issuers.
"The additional regulations for stablecoins contribute to creating credibility for a volatile investment class, and currency-based tokens should fall under a higher standard, since they have much wider applications for payments", Chen Zhuling, CEO of the company based in Singapore for staking solutions Rockx shares Rockx in an email.
Until December 21 of this year is asked for public feedback on the two suggestions. It is not yet clear when the measures will be implemented.
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The contribution Singapore Central Bank Seeks Feedback on Crypto Leverage Ban is not a financial advice.