Ravi Menon, chief executive of the Monetary Authority of Singapore, or MAS, said companies often labeled by the media due to recent market volatility as “Singapore-based” were not representative of the Singaporean approach. countries when it comes to crypto regulation.
In a speech on the MAS annual report on Tuesday, Menon said Crypto-related companies including TerraForm Labs and Three Arrows Capital, or 3AC, had “little to do” with crypto regulation in Singapore. According to the managing director of MAS, Three Arrows Capital was not regulated by the country’s payment services law and had “ceased to manage funds in Singapore”. before intercourse he failed to meet margin calls.
Menon also pushed back on associations with TerraForm Labs and Luna Foundation Guard – the platforms behind TerraUSD (formerly UST) separating from the US dollar – saying the companies were “not authorized or regulated by MAS, and did not applied for a license or applied for exemption from holding a license. Crypto lending company Vauld, which suspended withdrawals, transactions and deposits in July, applied for a license to operate in Singapore, but was operating unlicensed with Terra and Luna amid the market downturn.
“The global crypto industry continues to evolve, and regulation continues to catch up with industry trends,” Menon said. “Singapore is often considered to be at the forefront, with a clear licensing and regulatory framework. But to date, crypto regulation in Singapore, as well as in most major jurisdictions, has focused on controlling money laundering and terrorist financing risks.
During the MAS Annual Report press conference, Mr. Ravi Menon, Managing Director of MAS, highlighted the main macroeconomic challenges facing the global economy and #Singaporeand a multi-pronged approach to tackling #inflation.
– MAS (@MAS_sg) July 19, 2022
The MAS chief executive added that the financial watchdog would consult on moves towards a regulatory framework covering “consumer protection, market conduct and reserve support for stablecoins” in the coming months. In July, the Singaporean minister and chairman of MAS, Tharman Shanmugaratnam hinted at rules limiting crypto investments for retail traders and the use of leverage for crypto trading.
Sopnendu Mohanty, Director of FinTech at MAS said in June that the regulator would be “brutal and relentlessly harsh” on crypto firms exhibiting bad behavior. The financial watchdog later reprimanded 3AC for providing false informationalleging that the company had assets under management in excess of the amount permitted under regulatory guidelines.
“MAS and relevant government agencies will take strong enforcement action if an entity is found to be conducting illegal activities or performing regulated activities without a license,” Menon said.