Tharman Shanmugaratnam, Chairman of the Monetary Authority of Singapore (MAS), said during his parliamentary speech that the institution continues to work on taking additional measures to protect investors. It is stated that these measures include some limitations on crypto trading and leveraged crypto currency transactions by individual investors.
Crypto companies trying to cope with the liquidity crisis were the leading factors that increased the panic in the crypto money industry, while the fact that some of these companies were based in Singapore led to this country attracting attention.
Terraform Labs, which ignited the fuse by experiencing a collapse in May, continued its activities based in Singapore. On the other hand, the crypto hedge fund Three Arrows Capital, which filed for bankruptcy last week to avoid liquidations, has also been registered as a Singapore company. This week, it was seen that Vauld, the crypto credit and exchange platform operating in Singapore, could not meet the market conditions and suspended its transactions.
The Monetary Authority of Singapore has taken a tough stance against the cryptocurrency industry from the start. The government agency has warned since 2017 that trading cryptocurrencies is not suitable for individual investors.
On the other hand, the Singapore authority, which has taken an active approach to the cryptocurrency industry, imposed massive restrictions on crypto-related promotions within the country's borders earlier this year. According to the latest decisions, crypto money companies are prohibited from marketing and advertising activities in public places in the country. Following these restrictions, crypto advertising banners and crypto ATMs were removed in Singapore.
In addition, crypto companies must first obtain a license from the Monetary Authority of Singapore (MAS) to operate in the country. The conditions of the activity certificate required to do business in the country are quite heavy. It has been observed that only 14 companies have been able to obtain a license among about 200 companies that have applied to operate in the country to date.
Following the recent market developments, it can be expected that the licensing requirements for crypto companies may be further aggravated in addition to the measures to restrict individual crypto trading in Singapore.