• The Blockchain Association of Singapore (BAS) has opposed the proposed prohibition on token lending by the Central Bank of Singapore.
• The MAS has proposed to ban cryptocurrency companies from lending digital tokens to retail customers and providing incentives to them.
• The Blockchain Association of Singapore has proposed that such incentives should be regulated rather than banned and proposed that they be designed as “gifts that are not linked to financial purchases.”
The Blockchain Association of Singapore (BAS) has recently spoken out against the Monetary Authority of Singapore’s (MAS) proposed prohibition on token lending by cryptocurrency companies to retail customers. The association, which is a large cryptocurrency lobby group, has argued that the regulation is overly restrictive and would require retailers to obtain funding from unregulated companies.
The MAS had also proposed a ban on cryptocurrency companies providing incentives to retailers. The association opposed this by proposing that such incentives should be regulated instead of prohibited and suggested they be designed as “gifts that are not linked to financial purchases.” BAS argued that providing such incentives could help fund customers and pointed out that the interest rates on digital payment tokens can be attractive.
In addition to these suggestions, Singapore has also proposed to restrict cryptocurrency companies from lending or using their coins to generate yield. If this law is passed, individuals would not be able to take out loans to purchase tokens. However, the association argued that token lending could provide funds for customers and proposed that it should be limited rather than completely banned.
Overall, the Blockchain Association of Singapore is pushing back on the MAS’s overly restrictive proposals and believes that any regulations should be designed to help the industry rather than hinder it. The association is hoping that the MAS will take their suggestions into consideration and modify their proposals before they are formalized and implemented.