Categories: Business

Singapore central financial institution proposes measures on crypto buying and selling, stablecoin By Reuters

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© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum, DogeCoin, Ripple, Litecoin are positioned on PC motherboard on this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/Illustration

By Chen Lin

SINGAPORE (Reuters) – Singapore’s central financial institution has put ahead proposals for brand new regulatory measures on cryptocurrency buying and selling and stablecoins, in a bid to scale back the chance of client hurt from the volatility of the trade.

The measures printed in two session papers on Wednesday embrace not permitting companies to lend out cryptocurrencies owned by retail clients, and to make sure buyer property are segregated from their very own property.

Cryptocurrency buying and selling companies would additionally not be allowed to supply incentives to draw retail clients, nor settle for bank card funds or present financing to retail clients.

The Financial Authority of Singapore (MAS) has stated it discourages the general public from speculative buying and selling in cryptocurrencies and has already introduced in restrictions on promoting of cryptocurrency companies in public locations.

“…Cryptocurrencies play a supporting position within the broader digital asset ecosystem, and it could not be possible to ban them,” MAS stated in a media launch, including that the proposed measures ought to assist to scale back dangers.

Aside from addressing cash laundering, terrorism financing, know-how and cyber dangers, the MAS stated it wished to make sure regulated stablecoins had a excessive diploma of worth stability.

Within the case of stablecoins which might be pegged to a single forex (SCS) the place the worth in circulation exceeds S$5 million ($3.53 million), issuers should maintain reserve property in money, money equivalents or short-dated sovereign debt securities not less than equal to 100% of the par worth of the excellent SCS in circulation. The property should even be denominated in the identical forex because the pegged forex.

All SCS issued in Singapore could be pegged solely to the Singapore greenback or any Group of Ten (G10) forex, it stated.

Banks in Singapore shall be allowed to challenge SCS and no extra reserve backing and prudential necessities will apply, the assertion stated.

At present, just one stablecoin has been issued in Singapore.

The Asian monetary hub had initially attracted main crypto companies like Binance, however some left the city-state earlier this yr and moved to the United Arab Emirates, citing strict regulatory curbs in Singapore.

It’s unclear when the proposed measures is perhaps introduced in, however the public has been invited to provide suggestions by Dec.21.

($1 = 1.4160 Singapore {dollars})

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