The Central Bank of Singapore Will Not Tolerate Bad Behavior In The Crypto Industry

The Central Bank of Singapore will be "brutal and unrelentingly hard" on bad behavior in the crypto industry, Sopnendu Mohanty, the chief financial technology officer at the Monetary Authority of Singapore (MAS), told the Financial Times. In an interview with the newspaper, Sopnendu Mohanty said that Singapore has introduced a "painfully slow" and "extremely draconian due diligence process" for licensing crypto businesses in order to protect the wider economy.

In April, Three Arrows Capital, a hedge fund that suffered heavy losses in the recent market downturn, said it would leave Singapore for Dubai as the regulatory environment in Singapore worsens. Previously, Binance, the world's largest crypto exchange by trading volume, closed its Singapore arm and dropped its license application after it was ordered by the MAS to stop all crypto transfers.

Mohanty’s comments came after the collapse of the stablecoin TerraUSD (UST) in May roiled the crypto markets, which were already falling from November's highs due to macroeconomic conditions. However, while the process can be harrowing, that hasn't stopped some crypto companies from drifting off course. The country recently granted licenses to Crypto.com and two other companies.

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