- MAS proposed measures to reduce risks to consumers from crypto trading.
- The regulators also focus on enhancing stablecoin-related activities.
- The proposed measure will focus on consumer access, business conduct, and technology risks.
On Wednesday, the Monetary Authority of Singapore (MAS) proposed measures to reduce the risks involved with crypto trading and enhance regulations of stablecoin-related activities. The consultation papers that were issued by MAS proposed restricting retail investors from borrowing money or using credit cards to buy crypto and warned users against lending out their digital tokens in search of yields.
MAS explained that the proposed measures will focus on three major areas like consumer access, business conduct, and technology risks.
For the stablecoins, MAS mentioned that the current regulatory framework focuses on money laundering and terrorism financing risks, technology, and cyber risks. Apart from the current regulatory framework, MAS ensured that stablecoins will focus on their high degree of value stability.
Moreover, MAS ensured that the issuance of stablecoins will be pegged to a single currency.
The Deputy Managing Director of MAS, Ms. Ho Hern Shin explained:
The two sets of proposed measures mark the next milestone in enhancing Singapore’s regulatory approach to foster an innovative and responsible digital asset ecosystem. Regulations go hand-in-hand with innovation in financial services
Additionally, Ms. Shin explained that the enhanced regulatory regime for stablecoins aims to support the development of value-adding payment use cases for stablecoins in Singapore.
The Deputy Managing Director also mentioned that MAS will partner with industry players to explore the potential benefits of tokenization and distributed ledger technology. The authority claimed that it will make the appropriate adjustments to the regulatory framework and address the associated risks.