Singapore to consider further crypto safeguards in wake of falling crypto prices

What

Singapore is considering new rules to protect consumers in the wake of falling crypto prices

Why

The move follows the collapsing of two high-profile Singapore-based companies: Terraform Labs, whose TerraUSD stablecoin crashed in May and Three Arrows Capital, the crypto hedge fund ordered into liquidation last month after failing to repay creditors

What next

The Monetary Authority of Singapore has stated that steps taken may include leverage rules and limits on retail participation

The story

Singapore is considering new rules to protect consumers after falling crypto prices resulted in a series of high-profile failures of crypto companies based in the city-state.

Expanding on these new measures, the Monetary Authority of Singapore’s Chairman Tharman Shanmugaratnam said they had been “carefully considering the introduction of additional consumer protection safeguards” which may include “placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”

Authorities in Singapore have continued to be wary of crypto, granting just 14 firms regulatory approval to provide digital token payment services locally, a fraction of almost 200 applicants.

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