Singaporean Authorities Claim Terra, 3AC, and Others Were Unlicensed

Singapore’s leading fiscal authority, MAS has denied licensing a handful of recently collapsed crypto firms often linked to the nation.

MAS Clears Regulatory Misconceptions

TerraForm Labs, Luna Foundation Guard, Vauld, and Three Arrows Capital are among the platforms in question here. Of late, these firms have all experienced significant turbulence due to the ongoing market volatility as well as other issues. Another thing they have in common is ties to the Southeast Asian country Singapore, as the media often touts them as Singapore-based.

However, in a recent speech Ravi Menon, managing director of the Monetary Authority of Singapore (MAS) addressed this perception. Earlier today during the MAS yearly review, Menon clarified that past events do not showcase the watchdog’s take on regulation. Despite the media claiming otherwise, Singaporean regulators had no hand in monitoring the affected companies. 

Menon stated that 3AC had not followed Singapore’s Payment Services Act. Additionally, the crypto hedge fund had already ceased operations in Singapore before speculation rose regarding its failure to meet margin calls. The MAS managing director also cleared the body’s role (or lack thereof) in regulating TFL and the LFG.

Since Terra’s resounding crash both platforms and MAS  by extension have been in the public eye. MAS claims that neither company holds a license or stands under its regulatory authority. In addition to this, TerraForm Labs and Luna Foundation Guard have never submitted license applications or requested regulatory exemptions. 

Singapore to Improve on Crypto Regulation

On the other hand, crypto lender Vauld has attempted to secure licensing to operate within the nation’s borders. However, as the market began its decline, the platform alongside TFL and LFG still had not completed registration. 

Finally, Menon revealed that the Monetary Authority of Singapore has plans for stricter regulatory measures. The institution intends to review a comprehensive structure that addresses  “consumer protection, market conduct, and reserve backing for stablecoins.” 

Sopnendu Mohanty, MAS head of financial technology weighed in on crypto policy last month. Mohanty said MAS intends to clamp down on delinquent crypto businesses. With this in view, Three Arrows Capital may be first in line for regulatory action. 

3AC Creditors Holding the Bag?

MAS chastized the platform for giving misleading information. According to them, 3AC held assets in management exceeding the authorized quantity under regulatory requirements. However, more information has surfaced regarding the firm’s messy finances in a Twitter post, from user @DrSoldmanGachs.

Reportedly, one of the hedge fund’s creditors, DrSoldmanGachs, alleged that Three Arrows has debt claims worth nearly $3B. The source also suggests that 3AC creditors might be left with nothing after discrepancies in the company’s public records and actual holdings were discovered. The majority of the source findings came to light following a gathering of the company’s creditors. DrSoldmanGachs statements are yet to be confirmed. 

Interestingly, attendees voted Digital Currency Group, Voyager Digital, Blockchain Access Matrix Port Technologies, and CoinList Lend onto the creditor committee. These companies make up roughly 80% of the listed claims, which, notably may not be all there is.

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First, not all the creditors have made their claims and others are yet to reveal their claim amounts for confidential reasons.

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