The Monetary Authority of Singapore (MAS) is suggesting to tighten requirements for cryptocurrency lending firms by prohibiting businesses to lend out assets owned by retail customers.
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In newly published consultations papers, the financial watchdog also proposes to require crypto businesses to implement "proper segregation of customers' assets" and mitigate any conflicts of interest. MAS also proposes it should have rights to regulate the issuance of stablecoins where the value of them in circulation exceeds S$5 million (~$3.5 million).
"The enhanced regulatory regime for stablecoins aims to support the development of value-adding payment use cases for stablecoins in Singapore," said Ho Hern Shin, Deputy Managing Director at MAS.
MAS seeks public comments on the proposed changes by 21 December 2022. The move comes shortly after KPMG China rolled out a new report, saying that over 90% of high-net worth investors in Singapore are interested in the cryptocurrency market.
According to the survey results, about 58% of respondents have already invested, while 34% plan to do so.
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