Setting the Record Straight
Ravi Menon, the head honcho at the Monetary Authority of Singapore (MAS), made it clear during his recent address that not all companies labeled as “Singapore-based” in the media are reflective of the city-state’s approach to cryptocurrency regulation. Menon emphasized that some of the firms often discussed in the context of market turbulence, like TerraForm Labs and Three Arrows Capital (3AC), are not aligned with Singapore’s stringent regulatory framework.
The Case of Three Arrows Capital
In his speech, Menon pointed out that 3AC wasn’t regulated under Singapore’s Payment Services Act and had already stopped managing funds there before the recent reports about their financial mayhem. It’s like inviting someone who already left the party to tell the host how to arrange the furniture.
Not Your Average Crypto Company
Menon didn’t let up, clarifying that firms like TerraForm Labs and Luna Foundation Guard, which are linked to the TerraUSD debacle, had never been licensed by MAS. In fact, they didn’t even bother to apply for the necessary licenses. Apparently, they missed the memo on Singapore’s rigorous licensing requirements while they were busy causing chaos in the crypto world.
Regulatory Focus Amid Market Volatility
Menon acknowledged that the global crypto industry is still maturing and regulatory measures are evolving at a snail’s pace. His words came with a warning that Singapore, often seen as a beacon of regulatory stability, has its focus sharply set on preventing activities like money laundering and terrorist financing, which don’t exactly make great headlines in the crypto narrative.
A Roadmap for Future Regulation
He indicated that MAS is bracing for a new regulatory framework aimed at consumer protection, market conduct, and even reserve backing for stablecoins in the months to come. So for those crypto enthusiasts thinking they can play fast and loose with regulations, think again. Singapore’s government is tightening the screws, and soon enough, there could be new rules limiting how much retail investors can fling into crypto and how leverage can be used.
Firm but Fair: MAS’s Stance
In a stern reminder to rogue firms, Menon highlighted that MAS, along with government agencies, would crack down hard on any illegal activities. The agency has a reputation for being tough but fair in its dealings, as shown when it reprimanded 3AC for misleading MAS about having assets under management beyond what’s allowed.
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