Most recently, Singapore has been at the center of the crypto winter. The collapsed crypto hedge fund Three Arrows Capital (3AC) has its headquarters in Singapore, where co-founder Zhu Su is also based. The crash in crypto prices has led to 3AC filing for Chapter 15 bankruptcy in the United States while a court on British Virgin Island ordered its liquidation. The Singapore MAS reprimanded 3AC for providing false information. Now, regulations for crypto companies on the island nation are to be tightened.
Claire Huang of The Strait Times reports that Senior Minister and Coordinating Minister for Social Policies and MAS Chairman Tharman Shanmugaratnam, on 4 July 2022, said the Monetary Authority of Singapore (MAS) has been “carefully considering” having additional investor protection rules, including limiting retail participation and imposing restrictions on leverage, or borrowed capital, when transacting in crypto.
“Given the borderless nature of cryptocurrency markets, however, there is a need for regulatory coordination and cooperation globally. These issues are being discussed at various international standard-setting bodies where MAS actively participates,” he said in a written reply to a parliamentary question on whether the regulator would put up more safeguards.
The MAS Chairman pointed out that cryptos are highly speculative and unsuitable for retail investors due to their extreme volatility.
