While the cryptocurrency market is still reeling from the devastation it experienced over the past few weeks, some financial regulators are beginning to adopt a stronger stance in terms of regulating the sector. The Monetary Authority of Singapore (MAS) said it will crack down on bad crypto behavior.
According to Sopnendu Mohanty, the city-senior state’s fintech officer, the central bank has vowed to be “brutal and unrelentingly hard” on illegal behavior in the cryptocurrency industry.
Sopnendu Mohanty claims that Singapore has put in place a “painfully slow” and “very draconian due diligence process” for licensing crypto companies in order to protect the entire economy.
As Singapore’s regulatory climate deteriorates, Three Arrows Capital, a hedge fund that has sustained significant losses in the recent market slump, announced in April that it will relocate to Dubai.
Earlier, after being ordered by MAS to suspend all cryptocurrency transfers, Binance, the largest cryptocurrency exchange in the world by trading volume, closed down its Singapore office and abandoned its application for a license.
Mohanty made his remarks after the collapse of the terraUSD (UST) stablecoin in May shocked the cryptocurrency markets, which were already declining from their highs in November as a result of macroeconomic concerns.
He declared, “We have no tolerance for any market bad behavior”.
Furthermore, he said, several cryptocurrency companies have continued on their current trajectory despite the painful process. Crypto exchange Crypto.com and two other businesses recently won digital payment service approval in Singapore.
