Singapore Intensifies Scrutiny Of Companies Working With Cryptos Like Bitcoin, Ethereum, Dogecoin

Singapore is intensifying its scrutiny of cryptocurrency-related companies ahead of planned regulatory changes with the Monetary Authority of Singapore (MAS) sending a detailed questionnaire to some applicants and holders of its digital-payments license, Bloomberg reported citing sources.

The questions, which were issued over the last month, concentrate on gauging the financial soundness of the com and their interconnectedness, with some adding they’re expected to respond promptly, the report said.

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Data Sought: The MAS has asked for data that include top tokens owned, top lending and borrowing counterparties and the amount loaned and top tokens staked via decentralized-finance protocols, the report said.

The MAS is also enquiring with local crypto exchanges about the processes followed to go live post getting a coveted digital payment token service license in order to better understand the risks, it added.

The development comes ahead of expected changes to crypto regulation in Singapore, where authorities are tackling encouraging innovation on the one hand, while limiting the fallout from collapsing firms and retail investors getting hit by the volatility in the market.

Major cryptocurrencies like Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD began drawing increased interest from retail investors globally last year amid a major bull run.

Expert Take: Hagen Rooke, a partner at law firm Reed Smith LLP in Singapore told Bloomberg, “in light of the various insolvencies and counterparty defaults which have plagued the crypto industry recently, the MAS is likely to be assessing the need for additional regulatory measures to mitigate the risks that led to these distressed scenarios.”