Terra, 3AC bring out stricter crypto laws for Singapore

Sahana Kiran
3AC
Source – Unsplash

This year’s bearish takeover brought the worst side of specific crypto projects. The downfall of Terra triggered a slew of bankruptcy filings starting from 3AC. With its co-founders missing, the community has grown wary. It turns out the crypto-verse wasn’t the only one cautious of the bankrupt platform, but regulators from across the globe were also concerned. The Monetary Authority of Singapore [MAS], in particular, seemed to be taking a big step in regulating the industry.

Over the last couple of weeks, the Singapore regulator has stressed the onset of stringent regulations. Now, MAS’s managing director Ravi Menon revealed that revised rules were being formulated. These laws will reportedly make it more difficult for retail investors to access crypto.

It should be noted that next month, the Singaporean central bank will hold a seminar to bring clarity to its stance on crypto. Menon added,

“We will set out how our developmental and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub.”

These rules will be revised as 3AC failed despite being registered as a fund management firm in Singapore. However, Menon suggested that the project’s collapse had “little to do with crypto-related regulation in Singapore.”

MAS previously reprimanded 3AC

3AC wasn’t the only culprit behind the Singaporean regulator’s latest move. The TerraForm Labs [TFL] and Vauld have also prompted the regulators to move in this direction. However, Menon pointed out that both TFL and Vauld did not entail a license to operate in Singapore.

Furthermore, it was revealed that MAS reprimanded 3AC for delivering false information and pushing the limit on its assets under management.

Apart from the fact that it is a Singapore-registered firm, MAS could be calling out 3AC for another reason. Last week, the firm’s liquidators were urging a Singapore court to approve the management of assets in the region instead of the British Virgin Islands.

The whole 3AC ordeal seemed to be taking multiple turns. As the community awaits answers, the co-founders have been listing themselves as creditors to their own company. At present, Zhu Su and the wife of Kyle Davies are on the list of creditors.