Singapore Weighs New Crypto Safeguards as Industry Stumbles

Singapore is considering new rules to protect consumers after plunging digital asset prices triggered a series of high-profile crypto blowups, including firms based in the city-state. 

The Monetary Authority of Singapore “has been carefully considering the introduction of additional consumer protection safeguards,” Tharman Shanmugaratnam, the central bank’s chairman, said in a written response to a question from parliament. “These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”

The central bank has repeatedly said this year that cryptocurrencies aren’t for retail investors, as a $2 trillion market selloff engulfed a growing list of players. Terraform Labs, whose TerraUSD stablecoin imploded in May, is in Singapore, as was Three Arrows Capital, the crypto hedge fund ordered into liquidation last month after failing to repay creditors. 

Vauld, a Singapore-based crypto lender, on Monday said it froze withdrawals and hired advisers to pursue a potential restructuring after a surge in withdrawals sapped liquidity. 

Read more: Crypto Lender Vauld Freezes Withdrawals, Eyes Restructuring (1)