The Monetary Authority of Singapore (MAS), Singapores financial regulator, says it really is focusing on amending the city-states digital assets regulations to cover a lot more than Anti-Money Laundering and Combating Financing of Terrorism (AML/CFT) and can soon hold public consultations on the problem.
Senior Minister and Minister responsible for MAS, Tharman Shanmugaratnam, made the announcement in awritten responseto a parliamentary question raised by MP Saktiandi Supaat of the Bishan-Toa Payoh Group Representation Constituency.
The questions fond of the Prime Minister bordered on three issues: If the MAS has data on the extent of the exposure of Singaporeans to the Terra ecosystem crash; if the ecosystems revival efforts pose any longer systemic risk to the economy; and what steps the regulator is taking to examine the industrys regulations.
Shanmugaratnam stated that the MAS doesn’t have complete information on the digital assets holdings of Singaporeans. However, MAS data demonstrates banks have insignificant contact with theTerra ecosystem, suggesting that the spillover threat of the digital assets market crash to the mainstream financial sector is bound.
He further highlighted that, like other global regulators, the MAS is focusing on reviewing its method of digital assets regulations. This review will significantly targetstablecoins, he added.
MAS is assessing the merits of a regulatory regime tailored to the precise characteristics and risks of stablecoins, such as for example regulating the reserve requirements and the stability of the peg, and can consult the general public in the coming months, Shanmugaratnam wrote.
The response echoes statements he made last month whileansweringanother parliamentary inquiry on the MASs plans to modify digital assets firms. He noted that the MAS would leverage its recently expanded powers to redefine digital assets and introduce additional consumer protection safeguards.
Singapore dissociating itself from collapsed digital assets firms
Spurred by the collapse ofTerraalong with other digital assets firms like Three Arrows Capital (3AC) located in the city-state, Singapore has determined to be unrelentingly hard on the digital assets industry.
The MAS has cracked down hard on the firms which have brought it bad publicity. In accordance with a Bloomberg report, the MAS hasissueda reprimand to 3AC and contains several ongoing investigations in to the asset manager and Luna Foundation Guard (LFG).
The MAS in addition has distanced itself from the firms. In a recently availablereport, Ravi Menon, the managing director of MAS, shared that the firms, especially LFG and 3AC, aren’t representative of Singapores digital assets regulations approach. He revealed that 3AC had already lost its registration with the MAS before its liquidity fallout.
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