Singapore has decided to strengthen and broaden its crypto regulatory framework amid the crypto downturn.

Monetary Authority of Singapore (MAS) is set to toughen the framework on crypto platforms over the upcoming months.

This move by MAS comes after witnessing the industry’s meltdown. Ravi Menon, Managing Director of MAS, is of the opinion that investing in cryptocurrencies remains extremely risky.

The tightening of the scope of digital asset regulations is now going to look into more activities and also rigidify retail investors’ access to the virtual currency according to the recent rules.

These rules shall be proposed soon over the next few months. Additionally, MAS is considering to consult on its proposed measures around the months of September and October of 2022.

As per the launch of MAS’s annual report, the main focus area of regulation within and even outside of Singapore has remained money laundering and terrorism financing.

MAS Wants To Align With International Regulators For Crypto Regulation

Mr Menon also added that most jurisdictions do not cover areas such as consumer protection, market conduct and reserve backing for stable coins, reviews and public consultations are in development among international regulators and are to be strengthened in these areas.

He further added that,

Going forward, in line with international regulators, we’re also going to be broadening the scope of regulations to cover more activities. So players who are doing some of these activities, but are currently not caught, may well be caught. It’s hard to say.

MAS also has mentioned that Singapore will now need many such entities to get proper licensing.

Mr Menon, also expressed concerns about crypto firms which are going through difficult times and are based out of Singapore that have “little to do with crypto-related regulation in Singapore”.

Menon also referred to as TerraForm Labs and Luna Foundation Guard which were related to the major collapse of the TerraUSD stablecoin, lacked appropriate licensing for MAS and they had not applied for any license. They also did not have any exemption from holding licenses as they had not applied for the same.

Related Reading | Crypto.com Wins License Approval To Offer Payment Services From Singapore Regulator

Singapore’s Anti Crypto Stance Strengthened Due To The Recent UST Collapse

Singapore’s anti-crypto expression has gained intensity owing to the collapse of Terraform Labs “UST” stable-coin collapse along with the continued crypto bloodbath. Terraform Labs happens to be incorporated in Singapore among other organisations.

Three Arrows Capital was also a registered fund management firm in Singapore which has recently gone bankrupt.

Vauld is also among one of such names that is headquartered in Singapore but is currently not licensed by MAS and has also not sought any kind of exemption from holding license under the Payment Services Act.

Currently it has submitted the license application which awaits review.

Additionally, MAS clarified that Three Arrows Capital was not regulated under the Payment Services Act.

It operated under the registered fund management regime to carry out limited fund management business however it ceased to mange funds in Singapore before the company was led to insolvency.

Related Reading | Monetary Authority Singapore (MAS) Tightens Process To Approve Crypto License