According to reports, the Singapore regulator has zero tolerance for bad behavior when it comes to crypto. Sopnendu Mhanty, a Singapore regulator, stated to FT that if someone has done a wrong thing, they are harsh and unrelentingly tough.
According to Sopnendu Mohanty, the chief fintech officer of MAS, the central bank and financial regulator of Singapore, the Monetary Authority of Singapore will not tolerate any bad behavior in the crypto sector.
Mohanty stated that “we have no tolerance for market bad behavior,” in an interview with The Financial Times published Thursday. “If someone has done something bad, we are unrelentingly and brutally hard.”
Mohanty’s comments were made amid crypto market turmoil caused by the collapse in Singapore-based Terraform Labs’ two tokens, terraUSD (UST), and terra (luna), which have wiped out $40 Billion of investor wealth.
Terra’s implosion has caused crises for Three Arrows Capital, a Singapore-based crypto company. Due to significant losses in its luna investment, the fund was forced to liquidate. Three Arrows Capital cannot pay its debt and several lenders, including Voyager and BlockFi, are in financial trouble. Both received credit facilities from FTX’s sister company, Alameda Research.
Mohanty says that the current market turmoil is due to the loss of “private currency” in the global economy.
He said that the MAS would not grant licenses to cryptocurrency firms easily. He said that the regulator had imposed a slow and extremely draconian licensing process for crypto firms.
Only 14 companies have been approved by the MAS to provide crypto services. This week, granted in principle approval to Crypto.com and Genesis, as well as crypto trading platform Sparrow.
There has been a dramatic shift in Singapore’s perception of the crypto industry. Although the country had previously been openly interested in the sector, it has become more restrictive in its approach to crypto firms, which have begun to move to other countries like Dubai.
