Singapore MAS Investigates Crypto Companies Before New Legislation

The Singapore Monetary Authority (MAS) has begun preparations for new cryptocurrency rules addressing the continuing liquidity problem and withdrawal difficulties. According to a news source, certain applicants and license holders for the MAS’ Digital Payment Token have received lengthy questionnaires from Singapore’s central bank. The inquiries, which were issued over the last month, apparently requested “very detailed information” on the operations and holdings of the inspected crypto businesses. MAS Granted 10 Licenses to Crypto Business The MAS has so far granted ten licenses to cryptocurrency businesses in Singapore, including exchanges like Crypto.com and the brokerage division of DBS Bank called DBS Vickers. The most recent regulatory measure in Singapore appears to be intended to increase scrutiny of cryptocurrency companies in light of impending new laws for the sector. The financial watchdog is developing a regulatory framework to cover “consumer protection, market behavior, and reserve backing for stablecoins” in the upcoming few months, according to MAS managing director Ravi Menon’s announcement in mid-July. The MAS particularly referred to gaps in Singapore’s current crypto legislation, saying that companies that offer services for digital payment tokens are not liable for risk-based capital or liquidity requirements. Additionally, they are not yet required to safeguard client cash or digital tokens from bankrupt...