Following the catastrophic fallout of various crypto firms in Singapore, the MAS (Monetary Authority of Singapore) is surveying crypto firms that are operating in the state. The survey aims to help the regulator gain more information about their operations.
Singapore’s MAS Sends Questionnaire To Crypto Firms
According to reports, the MAS sent a questionnaire to various digital payment firms that have received a license and those that have applied for a permit. According to Bloomberg, the authority expects them to respond to the questionnaire promptly.
Using the survey, the monetary authority would gauge the financial soundness of the crypto firms in its jurisdiction. Meanwhile, the questionnaire would also provide more information about the holdings and activities of crypto firms.
According to the questionnaire sent to the companies, the regulator wants to know about the tokens owned by the exchanges and the top borrowing and lending counterparties they have dealings with. It also asks about the amount they have loaned out and their staked tokens on DeFi platforms.
Furthermore, the regulator solicited certain information from local-based exchanges to understand the various risks in the crypto sector. Also, it wants to know how crypto firms go live and expand after receiving licenses.
This recent move by the MAS comes before the expected crypto regulatory overhaul in Singapore. The state regulator is still trying to mitigate the effects of the recent fallout by major crypto firms.
MAS Faces Criticism For Inadequate Crypto Regulation
Ravi Menon, Managing Director for MAS, noted that the regulation would sweep across various crypto activities. The Managing Director said the agency would address regulation tensions next week.
“Applicants and Licensees are to notify the regulator of all events that can impair or impede their operations. This includes matters that might affect solvency or their ability to meet contractual, financial, or statutory obligations,” a spokesperson for the MAS stated.
Recently, the state’s regulatory structure received huge criticism. This is due to the fall of several crypto firms operating in the state. Examples include the fall of the 3AC hedge fund, Hodlnaut, Vauld, and Zipmex.
Hodlnaut, Zipmex, and Vauld have paused withdrawals and other activities on their platform. Although Zipmex is taking steps to ensure users withdraw their funds, the case is different for Vauld and Hodlnaut.
The concerted fall of these crypto firms highlighted the inadequacy of regulations guiding the operation of crypto firms in Singapore. Hence, the regulator is gearing up to regulate the activities of crypto firms in the country.