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Singapore plans to take strict measures on crypto related businesses due to increase in crypto frauds

As per media reports, Singapore is tightening up its observation on the workings of crypto-related organisations. The country is adopting these changes ahead of regulatory reforms.

As per our source, MAS (Monetary Authority of Singapore) has sent a set of questions to choose holders and applicants of its online-payment licenses.

The administrative authority is determined to get detailed information of various crypto firms, their holdings and firm activities.

The questionnaire was sent in July, to analyse the company’s monetary strength.

According to the spreadsheets that were provided to various firms, the regulator has requested data on the amount lent, top tokens owned, top tokens staked by using DeFi protocols and top lending and borrowing counterparties.

The MAS is turning to such measures to introduce changes to cryptocurrency guidelines. Apart from this the regulators are also trying to balance empowering innovation. All this while containing the results of falling organisation being burned by market unpredictability.

MAS official stated in response to media question and said, “Licensees and applicants are expected to notify MAS of any events that materially impede or impair the operations of the entity, including any matter which may affect its solvency or ability to meet its financial, statutory, contractual or other obligations.”

Crypto scams combined with falling businesses have prompted regulatory authorities to shift focus to crypto organisations.

The failure of crypto firms like Hodlnaut, Zipmex, Three Arrow Capital and Vauld shifted attention to the lack of risk management rules for businesses dealing with digital assets.

Just like most jurisdictions, Digital payment token service providers licensed by MAS are not subject to liquidity requirements and also nor they are required to protect user digital tokens from insolvency or investment funds.

As per the MAS, regulatory guidelines are mainly focused on dangers related to technology, terrorism financing and money laundering.

While the particularity of any planned reforms is yet obscure, a few organisations have started to voice concern that MAS would fight back harshly.

This could bring about burdensome and costly compliance necessities that will make it hard to operate a business in the country.

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