this point in May, citing individuals who recently lost large sums of money and even their life's savings after the meltdown of so-called"stablecoin" Luna.on operators through measures like requiring licenses and limiting where crypto players can advertise.
And since using leverage can allow rookies to get in over their heads with hefty bets while skipping pesky requirements like collateral assets, it is no surprise the city-state that banned chewing gum would want to regulate crypto, too.MAS reiterates its warning: cryptocurrencies are highly risky and are not suitable for the retail public. People can lose most of the money they have invested, or more if they borrow to purchase cryptocurrencies.
As if to prove MAS's warning was apposite, on the same day the minister's reply was published, Singapore-based crypto lending company Vaulda statement saying it was suspending both trade and withdrawals while seeking new investors after facing"financial challenges" cause by"volatile market conditions."
Between June 12, 2022 and July 4, 2022, the company claimed to have experienced customer withdrawals in excess of $197.8 million. Vauld said the crash was"triggered by the collapse of Terraform Lab's UST stablecoin, Celsius network pausing withdrawals, and [Singapore-based crypto hedge fund] Three Arrows Capital defaulting on their loans." ®