A Singapore-based cryptocurrency lobby group has voiced opposition to the central bank’s proposal to ban cryptocurrency firms from lending cryptocurrency tokens.
On Oct. 26, Singapore’s central bank issued consultation documents proposing to ban digital payment token service providers from offering “any credit facilities” to consumers. This includes fiat or cryptocurrency loans. However, the Blockchain Association of Singapore (BAS) believes that this may be too restrictive.
In a comment document sent to the Monetary Authority of Singapore (MAS), BAS reportedly argued that a blanket ban could push cryptocurrency users to lend their tokens to unregulated offshore companies. BAS also highlighted that one of the main things that attract users to lend is the interest they earn, which the association argues is one of the reasons people hold cryptocurrency.
In a statement to major news outlet Bloomberg, BAS board chair Chia Hock Lai said that instead of a blanket ban, they are proposing a more measured and targeted approach. This includes focusing on educating consumers when it comes to the risks of using unregulated entities. The president explained:
“The proposed measures, while well-intentioned, could have unintended consequences if fully implemented, including leading consumers to switch to unregulated service providers.”
In addition, BAS also argued that an outright ban on companies offering incentives to retail customers is “too draconian” and suggested a different way to allow gifts unrelated to financial purchases.
The consultation document issued by MAS in October last year came amid a series of crypto debacles in the country, including hedge fund Three Arrows Capital (3AC) and crypto platforms Vauld and crypto lender Hodlnaut.
Related: Su Zhu is called out by the community as he fires accusations against DCG
In other news, 3AC founders Zhu Su and Kyle Davies were recently quoted via Twitter. The duo have been ordered to provide documents in their possession, whether the information is theirs or a third party.
This post Singapore lobbyists oppose proposed blanket ban on lending crypto tokens
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