The Financial Authority of Singapore (MAS) will not rule out amendments to current laws and introduce new guidelines that will add extra restrictions on retail crypto-traders

In a written response to a query raised by one of many city-state’s MPs, MAS chairman Tharman Shanmugaratnam mentioned that Singapore’s central financial institution “has been fastidiously contemplating the introduction of further shopper safety safeguards.”

“These could embrace putting limits on retail participation, and guidelines on using leverage when transacting in cryptocurrencies,” wrote Shanmugaratnam.

In response to the chairman, the borderless nature of cryptocurrency markets additionally implies “a necessity for regulatory coordination and cooperation globally.”

“These points are being mentioned at varied worldwide standard-setting our bodies the place MAS actively participates,” Shanmugaratnam added.

Singapore crypto agency’s woes

The most recent feedback made by the MAS chairman got here scorching on the heels of the regulator’s transfer to reprimand Three Arrows Capital (3AC), a Singapore-based crypto fund, for allegedly “offering false info and exceeding belongings beneath administration threshold.”

3AC can be dealing with liquidation amid reviews the agency failed to satisfy margin calls from its lenders.

Becoming a member of the rising listing of crypto firms that bumped into troubles in current weeks, Singapore-based crypto lender Vauld on Monday mentioned it halted its operations and froze withdrawals of buyer funds.

The corporate claimed that since June 12, it had confronted withdrawals totaling $197.7 million. Vauld cited the implosion of the Terra ecosystem, Celsius Community’s monetary woes, and 3AC defaulting on its loans as causes for the mass withdrawals.

Commenting on the newest developments, Shanmugaratnam mentioned, “since 2017, the MAS has persistently warned that cryptocurrencies will not be appropriate investments for the retail public.”

He went on to say that “most cryptocurrencies are topic to sharp speculative value swings” and that “current occasions have vividly demonstrated the dangers, with costs of a number of cryptocurrencies falling drastically.”

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