The Monetary Authority of Singapore (MAS), Chairman, Tharman Shanmugaratnam stated that MAS needs greater oversight on the crypto industry as they discourage the participation of retail investors in crypto trading, citing crypto’s volatile nature.
Earlier in January 2022, MAS commented on their views of the volatility in the crypto market by advising retail investors to stay cautious and also closed down crypto ATMs.
Senior Minister and Minister in charge of MAS, Tharman Shanmugaratnam, said that MAS would be consulting on its preliminary crypto framework in the coming months.
Shanmugaratnam said, Singapore’s “key financial institutions do not have significant exposures to either distressed cryptocurrency firms or cryptocurrencies more broadly. Spillover to the domestic financial system has thus been very limited.”
The bank is “assessing the merits” of a regulatory regime that targets “the specific characteristics and risks” of stablecoins. According to Shanmugaratnam, the central bank plans to consult the public on possible rules for stablecoins in the coming months.
This comes in the plight of market crises faced by companies like TerraUSD stablecoin, Celsius, Babel Finance, and Three Arrows Capital to name a few.
Also Read: Crypto Friendly Singapore to Impose Regulations on Crypto Platforms
