By probing the operations of existing crypto firms, Singapore is preparing to implement new regulatory reforms within the country.
Many Cryptocurrency businesses in Singapore have been asked by the country’s central bank, the Monetary Authority of Singapore (or MAS for short) to submit information about their operations, current compliance measures, and registration status.
After the failure of other Cryptocurrency companies like Terraform Labs, Three Arrows Capital, and many others, this is being done as a preventative measure to protect investor funds.
Concerned crypto firms under the MAS’s watch have been sent a short and sweet questionnaire. The survey inquires as to the companies’ current offerings, the investing regimes they are tempted to pursue, and the deals they are currently offering to potential clients.
Crypto Firms Investigation
The Cryptocurrency companies claim that the MAS’s request for information was very specific, which means that the MAS is asking for a great deal of privileged information from these companies that they may not want to share with the regulatory bodies that easily.
In addition to these topics, the questionnaire also inquired about the company’s lending and borrowing activity, as well as the Cryptocurrency assets the company was currently holding.
The MAS has specified a number of areas in which crypto firms can and should improve. These include the solvency practices of crypto firms and the level of dedication shown by those firms to ensuring that users’ investments are safe at all times and immune to risk. Investors’ funds should not be at risk of disappearing into thin air, so it is important that this sort of evaluation become the norm.