Singapore's financial watchdog is collecting relevant information about crypto companies operating in the country.
The Monetary Authority of Singapore (MAS), the central bank and financial regulatory authority in the country, has reportedly sent a questionnaire to a handful of selected crypto firms, including applicants and owners of digital-payment licenses.
According to the news report issued by Bloomberg, MAS aims to obtain detailed information about the companies before implementing new crypto regulations.
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Based on the information, the questionnaires has been sent to the recipients a month ago. Among other things, the companies were asked to provide information about the most prominent tokens, the top lending and borrowing counterparties, the total amount lent, and the most prominent staked tokens.
The financial watchdog aims to gather information about cryptocurrency-related companies, their activities, and their holdings. By collecting data, Singapore authorities will make assumptions about their financial stability and evaluate their eligibility to participate in the Singapore crypto market. According to the MAS representative:
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.
The regulatory authority decided to take action to implement changes in crypto policies after the fall of Three Arrow Capital, Terraforms Labs, and Vauld. The MAS aims to provide a safer environment for retail customers by implementing regulatory changes.
The financial watchdog highlights that regulatory changes are necessary to ensure “customer protection, market conduct, and reserve backing for stablecoins”. Currently, the regulations focus on technological dangers, money laundering, and terrorism financing.
MAS notes that crypto companies must be the subjects of risk-based capital and meet liquidity requirements. Moreover, the authority aims to implement changes that crypto companies would be obligated to protect customer funds “from insolvent risks.”
It is considered that Singapore’s MAS has currently issued licenses to around 10 crypto-related companies from nearly 200 applicants. One of these companies is Crypto.com, which gained Singapore’s regulatory approval on June 22nd.
