Singapore Lobbyists Oppose Proposed Blanket Ban on Crypto Token Lending

[ad_1]

A Singapore-based crypto lobby group has voiced its opposition to the central bank’s proposal to ban crypto firms from lending crypto tokens.

On October 26, the central bank of Singapore released consultation papers and proposed to ban digital payment token service providers from offering any credit facilities to consumers, including fiat currencies and cryptocurrencies. However, the Blockchain Association of Singapore (BAS) believes this might be too restrictive.

In a feedback document sent to the Monetary Authority of Singapore (MAS), BAS allegedly argued that a blanket ban could cause crypto users to continue lending their tokens to unregulated offshore companies. BAS also pointed out that one of the main things that attracts users to loans is the interest they earn, which the association says is one of the reasons people hold crypto.

In a statement to Bloomberg, BAS Board Chairman Chia Hock Lai said that instead of a blanket ban, BAS is offering a more measured and targeted approach. This includes focusing on educating consumers about the risks of using unregulated entities. The President explained:

The proposed measures, while well-intentioned, could have unintended consequences if fully implemented, including driving consumers to switch to unregulated service providers.

Additionally, BAS also argued that a complete ban on companies offering inducements to retail customers is too draconian and suggested a different way to allow gifts unrelated to financial purchases.

The consultation paper released by MAS in October 2022 came amid a series of crypto debacles in the country, including those involving hedge fund Three Arrows Capital (3AC), crypto platform Vauld and crypto lender Hodlnaut. .

Related: Su Zhu Called Out By Community As He Levels Accusations Against DCG

In other news, 3AC founders Zhu Su and Kyle Davies were recently subpoenaed via Twitter. Both were ordered to provide documents in their possession whether the information was with them or a third party.

[ad_2]