Terra and 3AC Have Been Operating “Underground” In Singapore, According To MAS
Ravi Menon, director of the Monetary Authority of Singapore (MAS), said that companies often attributed to market volatility (Terra & 3AC) by the media recently are “headquartered in Singapore,” not representing represents the country’s approach to digital currency regulation.
According to the director of MAS, 3AC is not regulated under the country’s Payment Services Act and had “discontinued management of funds in Singapore” before reports that they could not respond to margin calls.
Menon also criticized the associations TerraForm Labs and Luna Foundation Guard – the foundation behind TerraUSD (formerly UST), saying that the companies “are not licensed or regulated by the MAS, nor have they applied for a license or applied for a license.”
Cryptocurrency lender Vauld (suspended withdrawals, trading, and deposits in July) has applied for a license to operate in Singapore but operates unlicensed alongside Terra and Luna in the market downturn.
“The crypto industry globally is still evolving, and regulation is still catching up with industry trends. Singapore is often seen as being at the forefront, with a clear licensing and regulatory framework. But the focus of crypto regulation to date in Singapore, as well as in most major jurisdictions, has been on containing money laundering and terrorist financing risks.”
MAS’s chief fintech officer, Sopnendu Mohanty, said in June that the regulator would be “aggressive and relentlessly tough” on companies with bad behavior. The financial watchdog reprimanded 3AC for providing false information, accusing the company of having assets under management above the amount allowed under the guidelines.
“MAS and relevant government agencies will take firm enforcement action if any entity is found to be conducting illegal activities or performing regulated activities without a license,” said Menon.
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