Singapore's central bank will act to form new regulations related to cryptocurrency and stablecoin trading in order to reduce the risk of instability for users.
What is included in the framework is to refuse to allow crypto market players to lend crypto owned by retail customers and to ensure that customer assets are segregated from their own assets.
In fact, crypto trading businesses will never be allowed to make incentive offers to attract retail customers, accept credit card payments or provide financing to retail customers.
According to the Monetary Authority of Singapore (MAS), they have restricted the advertising of crypto services in public places so that people are not influenced to make speculative trades in the digital asset.
However, such blocking is unlikely to happen as cryptocurrencies play a very important role in the digital asset ecosystem, MAS added.
Therefore, the action should be able to reduce risks such as money laundering, terrorism financing, technology and cyber risks.
Meanwhile, stablecoins pegged to the single currency (SCS) with more than $3.53 million should hold reserve assets in cash.
The string, every SCS issued in Singapore can be pegged only to the Singapore dollar or the largest economy of the Group of 10 (G10).
