Singapore has been long known for its forward thinking finance practices and has created an environment in which many crypto funds and companies have chosen to operate in. The Monetary Authority of Singapore (MAS) will release new regulation next month in an attempt to prevent future egregiously irresponsible crypto dealings from occurring within the country.
It seems after the Terra (LUNA) collapse and questionable lending and trading activities of Three Arrows Capital (3AC), Singapore’s Central Bank has released a statement that they intend to clean up the mess that has built up within its country’s border.
Terra and 3AC are specifically mentioned in the statement:
“In reality, these so-called ‘Singapore-based’ crypto firms have little to do with crypto-related regulation in Singapore.”
- TerraForm Labs and Luna Foundation Guard are not licensed or regulated by MAS, nor have they applied for any license or sought exemption from holding any license.
- 3AC was not regulated under the Payment Services Act. It had operated under the registered fund management regime to carry out limited fund management business, but had ceased to manage funds in Singapore prior to the problems leading to its insolvency.
The move seems like Singapore wants to retain the confidence it has built as a financial powerhouse and aims to rebuild the goodwill destroyed by Terra and 3AC.
- After Terra and 3AC have stolen the show with terrible mismanagement of funds, the Singapore Central Bank released a statement distancing itself from 3AC and Terra.
- The country will implement new laws and regulations to prevent future instances of its forward thinking regulations from being abused by bad actors.
- Future instances of scamming will be met with more rigorous force:
“MAS and relevant government agencies will take firm enforcement action if any entity is found to be conducting illegal activities or performing regulated activities without a license.”
Singapore Puts Its Foot Down After 3AC and Terra Debacle
Future crypto companies may find it harder to start doing business in Singapore with the increased regulations. The government hopes to avoid a repeat of being in the spotlight.