Singapore consider limits for retailers, leverage after the collapse of crypto

Singapore consider limits for retailers, leverage after the collapse of crypto

The central bank of Singapore is considering new consumer protection measures after turbulent markets suffocated some of the biggest names of the cryptocurrency, many of which had their headquarters in the city -state. Reports Bloomberg.

The Monetary Authority of Singapore (MAS), which also acts as the country's financial supervisory authority, "carefully considered" additional protective measures for consumers, said the chairman Tharman Shanmugaratnam on Monday in a rel = "Nofollow noopener" target = "_ blank" href = "https://www.mas.gov.sg/news/Parliatary-replies/2022/rry-to-parliatary-question-on-restrictions-cryptocurrency Request.

"This may include restrictions on participation in retail and rules for the use of leverage in transactions with cryptocurrencies," he wrote.

Shanmugaratnam emphasized that the limitless nature of the cryptoma markets requires global regulatory coordination, and said that the MAS is discussing these concerns at international level.

Three Arrows Capital (3AC), the crypto hedge fund company, which was recently sentenced to liquidation by a Junior Country Islands court and has just applied for bankruptcy in accordance with Chapter 15, is headquartered in Singapore.

Terraform Labs, the company behind the failed algorithmic stable coin Terrausd (VAT) and his sister token Luna, is also registered in Singapore. After VAT crashed in May-what caused Approx. Singapurs Deputy Prime Minister Heng Swee Keat had a strict warning . "Small investors in particular should stay away from cryptocurrencies. We cannot emphasize this enough," he said at a tech summit.

Singapore has already taken steps to protect crypto investors

The central bank itself has often advised private customers from trading cryptocurrencies. Bloomberg found that there were 14 companies that deal with digital assets in Singapore, given licenses and fundamental permits, including Crypto.com, Genesis and Sparrow Exchange from almost 200 applications.

In January the authority locked Providers of digital payment stands (DPTS) prevent their services to the general public, including in public transport, radio media, periodic publications, third-party websites, social media platforms, public events and road shows. It also informed the companies that physical crypto monetary machines are prohibited in public areas.

"Such a convenient access can tempt the public to act spontaneously with DPTs without taking into account the risks of trade with DPTs," wrote the MAS in a number of guidelines.

The latest events on the cryptom market have shown risks to the retail public, according to the recent warning of the MAS. The prices for crypto systems have dropped sharply since the all-time highs of last year, together with broader declines on the financial market, while crypto loans such as Celsius and Blockfi have to deal with liquidity crises.

Doug Schwenk, CEO of Digital Asset Research, Blockworks said in an interview that crypto companies that collapse under pressure should not be regarded as a sign of a general weakness in the industry.

"I think we'll lose Celsius. We'll probably lose some other players on the market. Three Arrows will definitely work off," he said. "Blockfi will not be as big as before. Coinbase had some layoffs. But that doesn't mean that there is no role for a company like Coinbase or Blockfi, or that someone will step in and replace what Celsius did."

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The contribution Singapore Mulls Limits on Retail Traders, Leverage after Crypto Collapse is not a financial advice.