The Central Bank of Singapore suggested tightening the supervision of crypto industry

The Central Bank of Singapore suggested tightening the supervision of crypto industry

Singapore monetary control (MAS) submitted two advisory documents to reduce the potential damage of consumers from the volatility of the cryptocurrency market.

MAS is waiting for comments from interested parties until December 21.

The proposed measures include a ban on issuing loans by firms, the base of which are digital assets belonging to retail users, as well as segregation of their own and client accounts.

Trade platforms will oblige not to offer incentives to attract retail customers and accept payments on credit cards or provide them with borrowed financing.

MAS intends to destymulate speculative trade. In January, the department introduced restrictions on advertising cryptocurrency services in public places.

The Central Bank announced the desire to provide stablecoins with a high degree of stability of their courses.

In the case of tokens tied to fiat currency (SCS), the cost of which in circulation exceeds 5 million SGD ($ 3.53 million), issuers must have reserve assets of at least 100% of the nominal value of SCS in circulation. They can consist of cash, their equivalents or short -term sovereign debt securities.

At the same time, assets should also be nominated in the fiat to which stablecoin is attached.

MAS allows SCS release with any of the national currencies G10. Banks can act as issuers. The basic capital should be the maximum of two values ​​- 1 million SGD (~ $ 709,000) or cover half of the operating expenses per year.

Additional backup banking and prudent requirements are not provided for.

Recall that in August the head of the Central Bank Ravi Menon announced the regulator’s plans to limit speculation with cryptocurrencies.

Shortly before this, Bloomberg sources reported that MAS sent requests for their activities and assets to companies from the industry.

Earlier, the authorities promised “cruelly and inexorably” to fight violations in the industry.

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