Singapore's central bank to tighten regulations around cryptocurrency; crypto companies sweat profusely

With an aim to bring the cryptocurrency companies on par with the country's rules and regulations, the Monetary Authority of Singapore (MAS), the country's central bank is set to take a tough stance. Reportedly, MAS is planning to hold talks with the industry players in September or October to discuss the scope of law. However, the battlelines have already been drawn.

Ravi Menon, Managing Director, MAS, in clear terms told the reporters that few crypto players will be ensnared in the legal net. "So, players who are doing some of these activities but are currently not caught, may well be caught. When we put out the consult, when we say what are the additional areas that we will regulate, it will capture a wider ambit of players," said Ravi.

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It is pertinent to note that currently, the South Asian country regulates its cryptocurrency sector by primarily looking out for traces of money laundering and terrorism. However, with a slew of investors getting duped by crypto sharks and their infamous pump-and-dump scheme, the central bank has had to step up.

The decentralisation of currency is the biggest reason given for the emergence and use of cryptocurrency. However, whenever the customers are defrauded and suffer massive investment losses, they do not have any authority to report the incident. Several governments around the world are aware of this void and the Singapore government is no different, with the central bank seeking to fill the same void.

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Up until now, crypto companies such as TerraForm Labs and Three Arrows Capital had a relatively easy time operating in the country, despite not having obtained proper licenses or following the city-state's rules applicable to digital token service providers.

"We want to take this targeted approach, and that's why we want to explain our overall approach to the industry. It's a targeted effort to contain the risk and overexposure of retail investments in cryptocurrencies." Ravi signed off by saying.

(With inputs from agencies)

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