The Monetary Authority of Singapore (MAS) has begun drafting new cryptocurrency regulations aimed at addressing the liquidity crisis and withdrawals.
The Central Bank of Singapore sent out detailed questionnaires to some MAS digital payment token licensees. The questionnaires required crypto companies to provide very detailed information about their activities and assets.
The checks are reportedly aimed at finding out everything about financial stability and connections between legal entities. Among others, there were questions about the main tokens held by companies, about borrowed funds, about the amounts of loans and the main tokens placed through decentralized finance protocols.
The report, citing people familiar with the topic, notes that legal entities were required to respond to the questionnaires immediately. There are currently only 10 crypto firms in Singapore licensed by MAS, including the Crypto.com exchange and DBS Vickers, the brokerage division of DBS Bank. In total, applications were submitted by about 200 companies, but so far the regulator has not considered them.
MAS drew attention to gaps in existing cryptocurrency regulations, stating that digital payment service providers are not subject to capital or liquidity requirements. They are also not required to protect customer funds or digital tokens from insolvency risks. Instead, the rules mainly focus on money laundering and terrorist financing, as well as technological risks.
MAS warned about the development of more stringent regulatory requirements for participants in the cryptocurrency industry in early August.
Source: Bits
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