As of now, the cryptocurrency industry is experiencing a downtrend and no cryptocurrency can claim it is not. The cryptocurrency sector has been facing the worst time ever and the entire community has been losing a lot for the past few months.
Singapore Wants to Deal with the Situation
With the cryptocurrency sector situation constantly moving towards the worst side with negative trends, governments from around the world are trying to deal with the situation.
Countries that have adopted cryptocurrencies on a faster scale than other countries are taking measures to proactively deal with the situation.
Singapore is among the countries determined to change the way cryptocurrencies operate locally and how they must be handled by the locals.
The MAS Wants to come up with New Crypto Regulations
The responsible regulatory authority from Singapore has decided to deal with the situation as swiftly as possible.
Lately, withdrawal issues and liquidity crises are on the rise within the cryptocurrency industry. This is the reason why the Monetary Authority of Singapore (MAS) wants to deal with the crisis as quickly as possible.
The regulator is determined to introduce new regulations surrounding cryptocurrencies. This time, the regulator wants to come up with regulations that are able to handle the pressure coming from the withdrawal issues as well as the liquidity crisis.
Central Bank has Sent Questionnaires to MAS License Holders
In order to find a solution to the cryptocurrency-related problems at hand, the central bank of Singapore has sought help from the MAS license holders.
The central bank of Singapore has recently sent out questionnaires to the holders of the Digital Payment Token license regarding cryptocurrency regulations.
The particular license is issued by the Monetary Authority of Singapore to the local entities aiming to offer digital assets and cryptocurrencies to the locals.
MAS Seeks Support from Local Crypto Entities
The reason behind sending questionnaires to the cryptocurrency firms is to gather the knowledge and information they have surrounding the ongoing issues.
The regulator working alongside the central bank of Singapore is determined to gain access to highly granular information. The information comprises the holdings and activities of the cryptocurrency firms that are licensed to operate through the MAS.
The Questionnaire Seeks Guidance on Multiple Aspects
The questionnaire has been formed to gather information and insights surrounding multiple aspects of the cryptocurrency industry.
The questionnaires seek guidance on aspects such as decentralized finance protocols and their staking pools for major cryptocurrencies.
The aspects also include the amount loaned on the DeFi protocols, borrowing/lending protocols, and tokens owned by the legalized firms.
The regulator has demanded that the firms must respond to the questionnaire as quickly as possible. This way, the regulator will be able to come up with firm and full-proof cryptocurrency regulations.
