Singapore has confirmed that it will seek to increase its regulation of the cryptocurrency sector.
The decision follows accusations that the city state has allowed certain entities to operate unsupervised leading to their most recent financial predicament.
The Monetary Authority of Singapore (MAS) will launch consultations and seek to improve on the existing regulatory climate.
Managing director Ravi Menon acknowledged that further regulatory moves may include more control over retail and investor access to cryptocurrencies.
He cited the recent rash of the TerraUSD stablecoin, along with cryptocurrency lenders such as Vauld, and hedge fund Three Arrows as some of the examples of why tighter control may be necessary.
Singapore has come under fire from global regulators after entities with ties to the city-state went belly up, taking a fair chunk of the cryptocurrency market down with them. One of those was Three Arrows Capital, which was nevertheless targeted by MAS.
As to TerraForm Labs and Luna Foundation Guard, the companies behind the failed TerraUSD, the companies were never tied to MAS, the regulator said.
Singapore has been wary of the cryptocurrency industry, passing restrictive rules and approving just 14 out of 200 applicants for a license as providers of digital token payment services.
Despite that, Singapore is confident that stepping up regulations today will help the city-state exert better control over cryptocurrency companies that may have an even fleeting association with it.
In the meantime, it’s best to trust only established gaming companies such as Bitcasino, 1xBit and FortuneJack. Use your crypto recreationally and get precisely what you have asked for.