Singapore agency “disclaims” liability to Terra and 3AC

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2022-07-24 19:26:40

A representative of the Monetary Authority of Singapore (MAS) said that troubled crypto companies reported by the press as being headquartered in Singapore are not subject to adequate regulation in the country.

The National Monetary Authority of Singapore has made an official statement for the first time

A series of market fluctuations, starting with the failure of LUNA – UST of TerraForm Labs, a series of liquidity crises and the bankruptcy of industry-leading lenders such as Three Arrows Capital, have caused heavy losses to the entire industry. crypto industry.

In parallel with that development, there were many grievances about the handling of the authorities, such as the Monetary Authority of Singapore (MAS) when they “resolutely” kept silent. The only action this organization has ever taken was to “reprimand” the 3AC fund for declaring false information about the size of the organization. Meanwhile, countries such as Korea, the US or the UK have quickly stepped in to find a solution.

The important point is that the two criminals causing “storms” are 3AC or TerraForm Labs, both established and operating in this country of only about 5 million people.

It was not until yesterday (July 20), that the National Monetary Authority of Singapore (MAS) officially responded. Ravi Menon, CEO of MAS, said that in reality, crypto companies that are said to be based in Singapore don’t really have much to do with crypto regulations in the country.

Mr. Menon also clarified that the fund Three Arrows Capital not regulated under the country’s Payment Services Act. Instead, it operated under a registered fund manager to conduct a limited fund management business, but ceased managing the fund in Singapore prior to default.

About the case of Terraform Labs and Luna Foundationthe MAS representative cited that both organizations has not been regulated by a regulatory authority, has never applied for or applied for a license exemption from MAS. The Singapore registered addresses of these organizations provide owners solely as registered agents.

In addition, Menon also mentioned that the Vauld lending platform had suspended trading at the beginning of July and is in the process of being appraised for help with the acquisition from Nexo, whose address is registered in Singapore, which is not currently covered by the MAS. licensed but has applied for a license pending review.

Finally, after all these events, Mr. Menon affirmed that there will be “tough” measures such as resolute enforcement if any company is found to provide crypto services without a license. In June, MAS’s Chief Financial Technology Officer, Sopnendu Mohanty, also stated that MAS would be “brutal” with bad practices in the crypto industry in Singapore.

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