Cryoto Currency

Stocksak: Singapore central Bank proposes measures for crypto trading and stablecoin

© Stocksak. FILE PHOTO – This illustration was taken on June 29, 2021. REUTERS/Dado Ruvic/Illustration

By Chen Lin

SINGAPORE (Stocksak), – Singapore’s central banks has proposed new regulatory measures for cryptocurrency trading and stablecoins in an effort to reduce consumer harm from volatility in the industry.

The Wednesday consultation papers published two measures that prohibit businesses from lending out cryptocurrencies to retail customers. They also require customer assets to be segregated.

Additionally, cryptocurrency trading businesses will not be allowed to offer incentives for retail customers, nor to accept credit cards payments or provide financing to customers.

The Monetary Authority of Singapore, (MAS), stated it discourages speculative trading in cryptocurrencies. They have already imposed restrictions on advertising cryptocurrency services in public places.

“…Cryptocurrencies support the wider digital asset ecosystem and it would be impossible to ban them,” MAS stated.

The MAS stated that it would address money laundering, terrorism financing, and technology and cyber risk.

Stablecoins pegged to a single money (SCS) whose value is greater than S$5 million ($3.53million) must be held in reserve assets in cash or cash equivalents. Short-dated sovereign debt securities must also be kept at least equal to 100%. The assets must be denominated using the same currency as the pegged currencies.

It stated that all SCS issued in Singapore can only be pegged to the Singapore dollar or any Group of Ten currency (G10).

The statement stated that banks in Singapore will be permitted to issue SCS without additional reserve backing or prudential requirements.

Singapore has only issued one stablecoin.

Initially, the Asian financial hub attracted major crypto companies like Binance. However, some of these businesses left the city-state earlier in the year to move to the United Arab Emirates citing strict regulatory restrictions in Singapore.

Although it is not clear when the proposed measures will be implemented, the public has been invited by Dec. 21 to provide feedback.

($1 = 1.4160 Singapore dollars)

News Source and Credit

Stocksak Editorial

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