Singapore is considering introducing new laws on digital currencies to protect consumers | Al-Nahda News

Singapore is considering introducing new laws to protect consumers after a drop in digital asset prices led to a series of catastrophic failures for crypto investors, including companies based in the country.

Singapore’s central bank governor, Tharman Shanmugaratnam, wrote in a written response to a question from Parliament that the Monetary Authority of Singapore is “carefully considering introducing additional safeguards to protect consumers… This may include placing limits on investor participation in retail businesses, and establishing laws on The use of financial leverage when dealing in digital currencies.

Governor Shanmugaratnam’s statement is based on what the central bank has said repeatedly this year that digital currencies are not for retail investors, as the $2 trillion market sell-off affected a growing list of players. Terraform Labs, the company whose stablecoin TerraUSD plummeted in May, is headquartered in Singapore, and the same is true of Three Arrows Capital, the digital hedge fund that was ordered last month to wind up after a default. to creditors.

Vauld, a Singapore-based cryptocurrency lender, said Monday it has frozen withdrawals and appointed advisors to pursue a potential restructuring of the company after an increase in withdrawals drained liquidity.

Bloomberg

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