Singapore plans to hold talks with crypto companies with a view to imposing stricter regulations on the emerging crypto industry in the country.

Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), signaled that crypto companies operating in the country are under pressure and that necessary measures will be taken to prevent negative events such as the damage done to individual investors by companies such as TerraForm Labs and Three Arrows Capital.

Menon, in his speech, emphasized that TerraForm Labs and Three Arrows Capital were operating in Singapore without a license and outside the rules of the cryptocurrency service provider, noting that they caused great losses.

Singapore has so far taken a measured approach to investing in the crypto sector, while keeping a close eye on risks such as anti-money laundering and terrorist financing. Among the measures taken against cryptocurrency investments in the country is the prohibition of crypto companies from engaging in marketing activities. In addition, Singapore, which is very meticulous in issuing operating licenses to companies, granted operating licenses to only 14 companies out of 200 license applications.

The Monetary Authority of Singapore

The Singapore-based operation of these companies, including TerraForm Labs, Luna Foundation Guard, crypto hedge fund Three Arrows Capital and crypto lending firm Vauld, against Singapore's tough stance on the crypto sector has drawn criticism over the country's regulations.

In response to criticism, MAS announced that Three Arrows Capital (3CA), which filed for bankruptcy last month, quit managing funds in Singapore prior to the financial crisis. TerraForm Labs also reminded that Luna Foundation Guard and Vauld are outside the scope of regulation of MAS.

Despite this, Singapore authorities, which have rolled up their sleeves to further tighten crypto regulatory activities, are expected to take tougher decisions to protect individual investors in crypto activities in the coming period.