According to a Bloomberg report, the Monetary Authority of Singapore (MAS) is now working to redesign and tighten the legal framework regarding its crypto stance.
During 2020 and 2021, Singapore established itself as a major crypto hub by inviting project founders, investors, and entrepreneurs from around the world with its crypto-friendly policies.
However, two of the most lucrative projects, Three Arrow Capital (3AC) and Terraform Labs, based in Singapore, collapsed last year, wiping out nearly $60 billion from the crypto market. This cascade caused a wipeout of approximately $2 trillion in a market crash, which still has an impact on the whole industry.
The Asian country still wants to continue to be a hub for the digital asset ecosystem and applications of blockchain technology.
Singapore started to reshape its crypto policy by taking initial steps in January 2022, with the regulators curtailing advertisements relating to digital assets. Earlier this year, the regulators also restricted citizens from lending out assets to earn interest.
While supporting innovations and newer technology to grow in the country, MAS does not want to push speculative trading to retail investors.
Singapore will become one of the “toughest regimes” for cryptocurrency when it comes to customer protection as well as a “facilitative regulatory regime” for tokenization and other aspects, says MAS’s Managing Director, Ravi Mohan.