Singapore MAS Screens Crypto Firms Ahead of New Regulations: Report

MAS Reportedly Asked Crypto Firms About Their Held Tokens, Top Lending and Borrowing Counterparties, Loans, and Top Tokens Staked Via DeFi .

The Monetary Authority of Singapore (MAS) has begun taking steps to prepare for new cryptocurrency regulations to address the current liquidity crunch and withdrawal issues.

Singapore's central bank has sent detailed questionnaires to some applicants and licensees of MAS digital payment tokens, Bloomberg reported on Friday.

Sent over the past month, the questionnaires apparently sought "very detailed information" about the business activity and holdings of the crypto companies under review.

The checks focused on the financial stability and interconnectedness of the companies, with issues such as major tokens held, major lending and borrowing counterparties, amount lent, and major tokens staked through decentralized funding protocols.

Quoting people familiar with the matter, the report notes that companies needed to respond quickly. So far, MAS has issued 10 licenses to crypto businesses in Singapore, including exchanges like Crypto.com and DBS Bank's brokerage arm, DBS Vickers. This is a tiny fraction out of nearly 200 reported companies that have applied for the license.

The latest regulatory action in Singapore is apparently aimed at stepping up oversight of crypto firms amid upcoming new regulations for the industry. In mid-July, MAS chief executive Ravi Menon revealed that the financial watchdog was working on a regulatory framework to address "consumer protection, market conduct and reserve support for stablecoins. " in the coming months.

The MAS specifically pointed to blind spots in Singapore's existing crypto regulations, noting that digital payment token service providers are not subject to risk-based capital or liquidity requirements. They also...