The Monetary Authority of Singapore (MAS) has announced that it aims to release feedback on consultations regarding cryptocurrency and stablecoin regulations by the middle of 2023.

This announcement comes after the central bank published two consultation papers in October of 2022, seeking responses on proposed regulatory measures to protect consumers from the risks of trading in crypto and support the development of stablecoins.

The consultation period closed on December 21st, 2022, and MAS received substantial feedback from a wide range of respondents. In response to a parliamentary question, MAS Chairman Tharman Shanmugaratnam stated that the authority is currently reviewing the feedback received and intends to publish its response by mid-2023.

Among the proposed regulatory measures for crypto service providers, MAS is considering banning the use of credit facilities and leverage by retail consumers for trading. Meanwhile, for stablecoins, MAS intends to regulate the issuance of single currency-pegged stablecoins with over S$5 million (US$3.7 million) worth in circulation. The authority also plans to allow Singapore banks to issue such stablecoins.

It is worth noting that Singapore has been vocal about its stance on cryptocurrency, with the government repeatedly highlighting the risks associated with trading in the industry. Singapore has taken steps to restrict the advertising and promotion of cryptocurrencies, as well as blocking crypto ATM services.

MAS has made it clear that it intends to balance the risks and benefits associated with crypto and stablecoins. While the authority recognizes the potential benefits of these technologies, it is committed to ensuring that consumers are adequately protected from the risks. The forthcoming feedback on consultations regarding crypto and stablecoin regulations will provide further clarity on how MAS plans to balance these competing interests.

In conclusion, MAS is taking a measured approach to regulating the cryptocurrency and stablecoin industry in Singapore. The forthcoming feedback on consultations will provide insights into the authority’s plans for regulating the industry and ensuring consumer protection. It remains to be seen how the industry will respond to these proposed regulations, but MAS has made it clear that it intends to strike a balance between risk and reward.

#Singapore #MAS #crypto2023 #azcoinnews #BTC

This article was republished from azcoinnews.com

Singapore’s central bank and police are reportedly working with banks to fine-tune their approach to opening accounts for digital asset service providers, according to Bloomberg. The project has been ongoing for about six months, and a report outlining best practices on due diligence and risk management is set to be released within the next two months.

The guidelines will apply to companies that provide payment, trading, and transfer services for assets such as stablecoins and non-fungible tokens (NFTs). The move comes as the crypto industry seeks to link up with traditional banks, but banks remain cautious about digital asset volatility and potential regulatory issues.

The official from the Monetary Authority of Singapore (MAS) said that whether a bank initiates or maintains a financial relationship with a cryptocurrency customer is a matter for the bank to decide between commercial considerations and business risk tolerance, even if guidelines are in place.

In recent times, US financial institutions such as Silvergate Capital and Signature Bank, which provided payment services to cryptocurrency companies, went bankrupt, leaving crypto firms struggling to find new banking partners.

The report’s release will give banks a better understanding of the best practices for conducting due diligence and risk management. It will also help them identify the risks associated with digital assets, particularly stablecoins and NFTs.

The MAS has been supportive of blockchain and crypto technology and has taken steps to establish Singapore as a hub for fintech innovation. The central bank’s ongoing work with local banks is expected to provide a more conducive environment for digital asset service providers, while at the same time helping to reduce the risks associated with these assets.

#Singapore #MAS #Binance #crypto2023 #azcoinnews

This article was republished from azcoinnews.com

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The Monetary Authority of Singapore (MAS) has taken action against executives from Three Arrows Capital (3AC), Kyle Livingston Davies and Zhu Su, by imposing a nine-year ban due to regulatory violations.

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This ban, known as a prohibition order (PO), became effective on September 13, 2023. It’s important to note that Zhu Su and Kyle Davies were the founders of the now-bankrupt crypto hedge fund, Three Arrows Capital. Within the company, Zhu Su served as the CEO and director, while Kyle Davies held the positions of chairman and director

MAS Restricts Zhu and Davies

According to the statement, Zhu Su and Kyle Davies are now banned from engaging in “regulated activity” and are prohibited from managing, holding director positions in, or acquiring significant shares in any capital market services firm under the Securities and Futures Act (SFA).

Following MAS’s reprimand of Three Arrows Capital in June 2022 for providing false information to MAS, failing to report changes in Zhu’s and Davies’ directorship and shareholdings, and exceeding the allowable assets under management for a registered fund management firm, MAS initiated further investigations into the firm, Zhu, and Davies.

The regulator asserts that Three Arrows Capital did not inform the Monetary Authority of Singapore (MAS) about appointing a new fund manager, provided false information to MAS by claiming that this manager did not engage in regulated activities, and failed to establish an appropriate risk management framework.

Loo Siew Yee, Assistant Managing Director of Policy, Payments & Financial Crime, stressed the importance of senior management in fund management implementing strong risk management measures to protect investors.

She also expressed serious concern on MAS’s part regarding Zhu’s and Davies’ disregard for MAS’s regulatory requirements and their failure to fulfill their directorial responsibilities. MAS is committed to taking action against senior managers involved in such misconduct.

Effect on OPNX Exchange from MAS Actions?

The cryptocurrency exchange known as OPNX, which is registered in Seychelles, was co-founded by Kyle Davies and Zhu Su, who are also executives at 3AC. Following the prohibition order issued by Singapore authorities against these individuals, some are wondering if it will have any impact on the exchange.

It’s important to note that the ban prevents them from participating in financial markets within Singapore, so it may not directly affect the OPNX exchange.

However, it’s worth mentioning that on August 16, OPNX and its founders, including Kyle Davies and Su Zhu, were fined approximately $2.8 million by Dubai’s Virtual Assets Regulatory Authority (VARA). These fines primarily resulted from violations related to marketing and advertising standards established by the regulator.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#CryptoNews #cryptomarket #MAS #OPNX #Singapore

#Singapore has once again positioned itself at the forefront of financial innovation and regulatory oversight. The Monetary Authority of Singapore (MAS) has unveiled new amendments to the Payment Services Act, specifically targeting the #crypto payment sector. Let's dive into what this means and the potential ripple effects across the crypto landscape.
Key Highlights:
Enhanced Regulation: The latest updates to the Payment Services Act aim to strengthen the regulatory framework around crypto payments, ensuring better protection for consumers and more robust anti-money laundering (AML) measures.Consumer Protection: With these new regulations, users can expect enhanced safety and transparency when engaging in crypto transactions.Market Impact: While tighter regulation might seem daunting, it could lead to increased confidence among institutional and retail investors, potentially fostering a more stable and mature market.Innovation Encouraged: Singapore continues to encourage innovation in the fintech space, ensuring that regulations evolve in tandem with technological advancements.
What’s Next?
As the crypto industry continues to navigate through waves of regulation and innovation, Singapore's approach could serve as a model for other nations. By striking a balance between oversight and growth, the future of crypto payments looks both promising and secure.
Stay tuned as we monitor how these changes unfold and their lasting impact on the global stage of digital finance.
#CryptoRegulation #PaymentServicesAct #MAS
$BTC

The Monetary Authority of Singapore (MAS) has introduced a comprehensive regulatory framework for single-currency stablecoins (SCS) within the country. This framework outlines key guidelines for transfer speeds and redemption processes for these stablecoins, reflecting MAS's approach to harnessing blockchain technology while maintaining regulatory control and stability.

Guidelines for Transfer Speeds

MAS's regulatory framework sets out a transfer speed guideline for MAS-regulated stablecoins. While blockchain technology has the potential to enable instant transfers, MAS acknowledges that different blockchain infrastructures may have varying service standards and levels of control by intermediaries. As a result, MAS has determined that three business days constitute a suitable time frame for transfers of SCS. This aligns with the existing requirements for domestic money transfers and ensures a timely transfer process that considers the complexities of different blockchain systems.

Addressing Redemption of Stablecoins

In addition to transfer speeds, the regulatory framework addresses the redemption of stablecoins. The guidelines establish a five-business-day grace period for redeeming stablecoins back to fiat currency. Despite feedback advocating for shorter redemption time frames, including real-time redemptions, MAS has chosen the five-day redemption period to strike a balance between responsiveness to user requests and the stablecoin issuer's ability to execute redemptions orderly, particularly during times of stress or market volatility.

Balancing User Needs and System Stability

MAS's decisions on transfer speeds and redemption periods reflect their commitment to balancing the advantages of blockchain technology with the necessity for regulatory oversight and stability. The three-business-day transfer guideline seeks to ensure timely transactions while considering the potential complexities of various blockchain infrastructures. The five-day redemption period emphasizes the need to manage redemptions in a controlled manner, safeguarding stability during challenging market conditions.

In Summary

Singapore's regulatory framework for single-currency stablecoins underscores the country's pragmatic approach to blockchain technology adoption. By establishing guidelines for transfer speeds and redemption processes, MAS aims to harness the benefits of innovation while maintaining financial stability and regulatory control. These decisions are tailored to the Singaporean context, reflecting MAS's commitment to embracing technological advancements within a framework of careful oversight. #Stablecoin #MAS #regulation #blockchain #Singapore