MAS: Many “Singapore” crypto firms are not regulated by Singapore

Singapore’s financial regulator MAS released its 2021/2022 annual report on July 19 and held a media conference.

Ravi Menon, Managing Director of MAS, at the media conference, introduced the inflation faced by major countries in the world including Singapore, Singapore’s approach to inflation and the performance of Singapore’s financial industry, and introduced the crypto crisis triggered by the collapse of LUNA and Three Arrows Capital. The impact of industry volatility.

He clarified that those so-called “Singaporean” crypto companies have little to do with crypto-related regulation in Singapore. The focus of crypto regulation in Singapore, as well as in most major jurisdictions, has been to control money laundering and terrorist financing risks. Most regulatory regimes today do not cover areas such as consumer protection, market conduct, and stablecoin reserve support.

Development of the cryptocurrency ecosystem

Now let me talk about the impact of the current turmoil and volatility in the global cryptocurrency industry. Some of the crypto players who encountered problems were reported by the media as “Singapore” companies. 

In reality, these so-called “Singaporean” crypto companies have little to do with crypto-related regulation in Singapore.

  • TerraForm Labs and Luna Foundation Guard are not licensed or regulated by MAS, nor have they applied for any licenses or sought an exemption from holding any licenses.
  • Three Arrows Capital is not regulated under the Payment Services Act. It used to operate under a registered fund management system with limited fund management business, but stopped managing funds in Singapore before the problems that led to its bankruptcy.
  • Vault is not currently licensed by MAS and has not sought any exemption from holding a license under the Payment Services Act. It has submitted a license application and is awaiting review.

MAS and relevant government agencies will take firm enforcement action if any entity is found to be engaging in illegal activities or regulated activities without a license.

The global cryptocurrency industry is still evolving, and regulation is still catching up with industry trends. 

  • Singapore is often seen as at the forefront, with a clear licensing and regulatory framework.
  • But to date, the focus of crypto regulation in Singapore, as well as in most major jurisdictions, has been to control money laundering and terrorist financing risks.
  • Most regulatory regimes today do not cover areas such as consumer protection, market conduct, and stablecoin reserve support.
  • This is changing. International standard-setting bodies and regulators are conducting reviews and public consultations to strengthen regulation in these areas. 
  • MAS aims to consult on the proposed measures in the coming months. 

But the key lesson of the turmoil in the global cryptocurrency industry is clear: Investing in cryptocurrencies is high risk.

  • This is something MAS has been warning the public about for the past five years. 
  • In fact, MAS’s repeated warnings about retail crypto investment and tightening policies to restrict retail investor access have raised some questions about MAS’s stance on the digital asset ecosystem.

Next month, we will be hosting a dedicated Green Shoots workshop to share our strategy to develop Singapore as a digital asset hub.

  • We’ll explain our position on cryptocurrencies, stablecoins, blockchain, tokenization, smart contracts, digital assets, and more – their risks and opportunities; drawbacks and potential.
  • We will articulate how our development and regulatory approaches will work in harmony to achieve Singapore’s vision as an innovative and responsible digital asset hub.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/mas-many-singapore-crypto-firms-are-not-regulated-by-singapore/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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