MAS Mulling Stablecoin Regulation in the Wake of TerraUSD and Luna Collapse – Lopoid Crypto News #MAS #Mulling #Stablecoin #Regulation #Wake #TerraUSD #Luna #Collapse #Lopoid Crypto News Welcome to Lopoid
The Monetary Authority of Singapore (MAS) is actively reviewing its strategy to the regulation of stablecoin in the wake of the collapse of the TerraUSD (UST) and Luna tokens, and will seek the advice of the public in the coming months.
The regulator is trying right into a framework that’s tailor-made to the particular traits and dangers of stablecoins resembling regulating the reserve necessities and the stability of the peg.
In a parliamentary response, Tharman Shanmugaratnam, Senior Minister and Minister in cost of MAS mentioned that spillovers to the mainstream monetary system and the economic system stay restricted at this level regardless of this turmoil.
He went on so as to add that whereas knowledge on cryptocurrency holdings amongst the Singapore public are usually not accessible, statistics collected by the regulator present that banks in Singapore have insignificant exposures to the cryptocurrency ecosystem.
Currently, stablecoins, along with different cryptocurrencies resembling Bitcoin, are thought-about digital fee tokens (DPTs) beneath the Payment Services Act.
The regulatory regime for DPT companies beneath the Act primarily targets cash laundering / terrorism financing and expertise dangers though MAS intends to take a extra complete strategy to crypto laws to incorporate shopper safety as effectively.
According to Tharman, the definition of DPT companies will probably be expanded to incorporate, for example, the switch of DPTs and provision of custodian pockets companies for DPTs, when the amendments to the Payment Services Act take impact.
MAS has repeatedly warned the public that the buying and selling of DPTs is very dangerous and banned the advertising and marketing or promoting these companies in public areas in Singapore.
“Our essential focus has been on improvements in distributed ledger applied sciences that may improve efficiencies in key wholesale market actions resembling commerce finance, cross-border funds, and the capital markets. MAS is working carefully with the trade on these areas.
MAS has been targeted on this broader ecosystem geared toward actual use circumstances, reasonably than cryptocurrencies, which type a small half of the digital asset ecosystem. We have been very selective in licensing cryptocurrency gamers as DPT service suppliers. We can even proceed to actively discourage retail participation in cryptocurrency buying and selling, which as MAS has repeatedly warned is plainly hazardous.”