The chief fintech officer at the Monetary Authority of Singapore told the Financial Times, Singapore’s central bank will be “brutal and unrelentingly hard” on bad behavior in the crypto industry.
In a measure to protect the wider economy, Sopnendu Mohanty said in an interview with the newspaper that Singapore has enacted a “painfully slow” and “extremely draconian due diligence process”.
In April, Three Arrows Capital, a hedge fund that suffered massive loss said it will quit Singapore for Dubai, as the regulatory environment sours. Earlier, after MAS told Binance to stop all crypto transfers, the largest crypto exchange by trading volume has shut down its Singapore unit and dropped its application for a license.
After the collapse of the terraUSD (UST) stablecoin in May roiled markets that were already dropping from November’s highs because of a decline in macroeconomic conditions, Mohanty commented “We have no tolerance for any market bad behavior,” he said.
Still, some crypto companies hasn’t been deterred from staying on the path although the process may be torturous journey. Crypto exchange Crypto.com and two other companies have recently been granted in-principle digital token payment licenses by the country.