Singaporean authorities will expand the regulation of cryptocurrencies to cover more types of activities to limit the risks to investors. It is reported by Bloomberg.

The head of the division, Ravi Menon, said the Monetary Authority of Singapore (MAS) will hold consultations on the proposed measures in September-November.

The updated rules could include tightening access to cryptocurrencies for retail investors, he added.

“In the future, in line with global requirements, we will expand the scope of regulation to include more activities. So players who use some of these operations but are not currently covered can be very well contained.”

In May, a major shock for the crypto industry was the collapse of the Terra ecosystem, whose key participants (TerraForm Labs and Luna Foundation Guard) declared Singapore as their main jurisdiction. The bankrupt hedge fund Three Arrows Capital has linked its operations to the city island. In July, country-based crypto lending platform Vauld suspended operations.

Regarding these companies, Menon noted that none of them are authorized to operate under the current digital asset service provider licensing system. According to the publication, out of nearly 200 applications, MAS approved only 14.

The department head praised the potential of the underlying blockchain technology, emphasizing that retail investors should avoid cryptocurrencies.

According to him, MAS will hold a seminar in August to determine its position in oversight of the crypto market.

“We will demonstrate how our development and regulatory approaches work in harmony with the goal of transforming Singapore into an innovative and responsible digital asset hub,” said Menon.

Recall that MAS announced a possible tightening of cryptocurrencies regulation in early July.