Singapore ‘s financial authorities are taking steps to strengthen oversight of the crypto space, with new regulations potentially requiring companies to share key details to improve transparency.
Only 10 licenses for crypto companies approved in Singapore
The Central Bank of Singapore mentioned that it aims to create stronger safeguards to protect retail customers. This change in regulatory action in Singapore is mainly aimed at stepping up scrutiny of digital asset firms amid new regulations in the industry.
Citing people close to the matter, The Monetary Authority of Singapore (MAS) mentioned that firms are expected to respond to the given questionnaire as soon as possible.
Indeed, Singapore ‘s regulators are sending a questionnaire to crypto companies that have been distributed over the past month, aiming to assess the financial stability and inter-connectivity of the companies.
The survey comes ahead of expected changes to the regulations governing the operation of these platforms. In early July, MAS said that imposing additional restrictions on crypto-trading was one of the measures being considered.
Regulators has further demanded:
- an urgent response from these firms: according to sources, the agency has requested information on key tokens held, key lending and borrowing counter parties, the amount lent, and key tokens staked using the deFi protocols.
- regional crypto-exchanges on the procedures they follow before going live after receiving a sought-after digital payment token service.
According to MAS CEO Ravi Menon, the new crypto policies will cover a broader part of the industry and will now include many activities. Details of how MAS will manage the exchanges are not being disclosed; however, more information will emerge in the coming days.
Out of about 200 applicants, the regulator has so far approved more than 10 licenses for cryptocurrency companies seeking to offer services using digital payment tokens in Singapore.
Part of the new crypto regulations to be introduced by MAS could require small investors to pass a suitability test before being allowed to trade cryptocurrencies. These companies will also be mandated to disclose key information to improve transparency.