Singapore’s MAS Seeks Information on Crypto Business Activities
The Monetary Authority of Singapore (MAS) has sent an array of questionnaires to cryptocurrency exchanges operating in the city-state asking for granular details about their business activities.
According to a Bloomberg report on Friday, the regulator is seeking information on top tokens owned by the exchanges, top counterparties for lending and borrowing, and the loaned amount. The regulator is further seeking information on top tokens staked via decentralized-finance protocols.
The regulator started to send the questionnaires last month to some applicants and holders of its digital-payments license. To date, MAS granted licenses to only over a dozen of cryptocurrency companies, while almost 200 are still on the waitlist.
The Singapore regulator is further seeking information on steps the crypto companies are taking to go live after receiving the digital payment token service license. The report outlined that the regulator is poised to better understand the risks around the industry.
“Licensees and applicants are expected to notify MAS of any events that materially impede or impair the operations of the entity, including any matter which may affect its solvency
Solvency
Solvency is defined as the quality or state of being solvent, relating to any individuals or businesses’ ability to pay off long-term debts including incurred interest.In essence, solvency is the ability of an entity to continue operations into the foreseeable future. Companies that become insolvent end up filing bankruptcy while solvency ratios can be performed by investors or analysts to evaluate a company’s ability to stay in business. How is Solvency Determined?Common solvency ratios used include the interest coverage ratio and debt-to-assets ratio.Entities seeking to learn a company’s ability to pay interest on its debts use the interest coverage ratio.Additionally, the debt-to-assets ratio provides insight as to whether a company has incurred too much debt in relation to the value of its assets. Regarding solvency, there tends to be confusion regarding the differences between solvency and liquidity. Solvency relates to an individual’s or company’s ability to meet long-term obligations.In parallel, liquidity is best defined as a company’s capability to paying off short-term obligations, which must be immediately accessible or effortless exchanged into serviceable capital. For prospective business creditors, investors can gain insight into a company’s liabilities through the total liabilities to net worth ratio, where the higher the ratio indicates less protection ensured to investors. Depending upon the industry, solvency ratios can vary although universally solvency ratios that reflect lower solvency than the industry benchmark serves as precursors that an individual or company may experience financial difficulties in the foreseeable future.
Solvency is defined as the quality or state of being solvent, relating to any individuals or businesses’ ability to pay off long-term debts including incurred interest.In essence, solvency is the ability of an entity to continue operations into the foreseeable future. Companies that become insolvent end up filing bankruptcy while solvency ratios can be performed by investors or analysts to evaluate a company’s ability to stay in business. How is Solvency Determined?Common solvency ratios used include the interest coverage ratio and debt-to-assets ratio.Entities seeking to learn a company’s ability to pay interest on its debts use the interest coverage ratio.Additionally, the debt-to-assets ratio provides insight as to whether a company has incurred too much debt in relation to the value of its assets. Regarding solvency, there tends to be confusion regarding the differences between solvency and liquidity. Solvency relates to an individual’s or company’s ability to meet long-term obligations.In parallel, liquidity is best defined as a company’s capability to paying off short-term obligations, which must be immediately accessible or effortless exchanged into serviceable capital. For prospective business creditors, investors can gain insight into a company’s liabilities through the total liabilities to net worth ratio, where the higher the ratio indicates less protection ensured to investors. Depending upon the industry, solvency ratios can vary although universally solvency ratios that reflect lower solvency than the industry benchmark serves as precursors that an individual or company may experience financial difficulties in the foreseeable future.
Read this Term or ability to meet its financial, statutory, contractual, or other obligations
Obligations
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you or will owe you money that is considered an obligation. Different Types of ObligationsBonds, banknotes, and coins are examples of obligations because they assure users that they are accredited with the face value of that item. Obligations play a considerable role in personal finance and should be included in every budget. While every budget is different from one another, individuals can use the Financial Obligation Ratio (FOR) that is published quarterly by the Federal Reserve Board as a good reference point on how to best structure individual budgets. For those in the process of retirement planning, obligations should be scrutinized with a wide scope.These should include typical financial obligations such as mortgage payments and healthcare expenses that may incur. In trading, obligations are dealt in the form of put options and short selling or they may refer to the selling of shares on the next trading day after they were purchased in delivery. When obligations fail to be met and legal proceedings have begun, the severity of the punishment set forth is primarily determined by the terms of the contract although juror and judge intervention may lessen the obligations that must be met to fulfill the contract.
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you or will owe you money that is considered an obligation. Different Types of ObligationsBonds, banknotes, and coins are examples of obligations because they assure users that they are accredited with the face value of that item. Obligations play a considerable role in personal finance and should be included in every budget. While every budget is different from one another, individuals can use the Financial Obligation Ratio (FOR) that is published quarterly by the Federal Reserve Board as a good reference point on how to best structure individual budgets. For those in the process of retirement planning, obligations should be scrutinized with a wide scope.These should include typical financial obligations such as mortgage payments and healthcare expenses that may incur. In trading, obligations are dealt in the form of put options and short selling or they may refer to the selling of shares on the next trading day after they were purchased in delivery. When obligations fail to be met and legal proceedings have begun, the severity of the punishment set forth is primarily determined by the terms of the contract although juror and judge intervention may lessen the obligations that must be met to fulfill the contract.
Read this Term,” a MAS spokesperson told the publication.
The regulator, however, did not officially reveal its dealings with individual crypto companies, citing confidentiality.
The Asian Crypto Hub
Singapore is one of the most sought jurisdictions for crypto startups after the Chinese crackdown. However, the industry was rattled by the recent collapse of multiple local crypto companies including Three Arrows Capital, Zipmex, Hodlnaut, and Vauld.
The MAS last month revealed the consideration of bringing more restrictions on retail cryptocurrency trading, which might limit retail participation and leverages.
Earlier this year, the city-state already imposed heavy restrictions on cryptocurrency promotions that banned companies from displaying crypto ads in public spaces. These restrictions even forced crypto ATM providers to remove their machines.
The Monetary Authority of Singapore (MAS) has sent an array of questionnaires to cryptocurrency exchanges operating in the city-state asking for granular details about their business activities.
According to a Bloomberg report on Friday, the regulator is seeking information on top tokens owned by the exchanges, top counterparties for lending and borrowing, and the loaned amount. The regulator is further seeking information on top tokens staked via decentralized-finance protocols.
The regulator started to send the questionnaires last month to some applicants and holders of its digital-payments license. To date, MAS granted licenses to only over a dozen of cryptocurrency companies, while almost 200 are still on the waitlist.
The Singapore regulator is further seeking information on steps the crypto companies are taking to go live after receiving the digital payment token service license. The report outlined that the regulator is poised to better understand the risks around the industry.
“Licensees and applicants are expected to notify MAS of any events that materially impede or impair the operations of the entity, including any matter which may affect its solvency
Solvency
Solvency is defined as the quality or state of being solvent, relating to any individuals or businesses’ ability to pay off long-term debts including incurred interest.In essence, solvency is the ability of an entity to continue operations into the foreseeable future. Companies that become insolvent end up filing bankruptcy while solvency ratios can be performed by investors or analysts to evaluate a company’s ability to stay in business. How is Solvency Determined?Common solvency ratios used include the interest coverage ratio and debt-to-assets ratio.Entities seeking to learn a company’s ability to pay interest on its debts use the interest coverage ratio.Additionally, the debt-to-assets ratio provides insight as to whether a company has incurred too much debt in relation to the value of its assets. Regarding solvency, there tends to be confusion regarding the differences between solvency and liquidity. Solvency relates to an individual’s or company’s ability to meet long-term obligations.In parallel, liquidity is best defined as a company’s capability to paying off short-term obligations, which must be immediately accessible or effortless exchanged into serviceable capital. For prospective business creditors, investors can gain insight into a company’s liabilities through the total liabilities to net worth ratio, where the higher the ratio indicates less protection ensured to investors. Depending upon the industry, solvency ratios can vary although universally solvency ratios that reflect lower solvency than the industry benchmark serves as precursors that an individual or company may experience financial difficulties in the foreseeable future.
Solvency is defined as the quality or state of being solvent, relating to any individuals or businesses’ ability to pay off long-term debts including incurred interest.In essence, solvency is the ability of an entity to continue operations into the foreseeable future. Companies that become insolvent end up filing bankruptcy while solvency ratios can be performed by investors or analysts to evaluate a company’s ability to stay in business. How is Solvency Determined?Common solvency ratios used include the interest coverage ratio and debt-to-assets ratio.Entities seeking to learn a company’s ability to pay interest on its debts use the interest coverage ratio.Additionally, the debt-to-assets ratio provides insight as to whether a company has incurred too much debt in relation to the value of its assets. Regarding solvency, there tends to be confusion regarding the differences between solvency and liquidity. Solvency relates to an individual’s or company’s ability to meet long-term obligations.In parallel, liquidity is best defined as a company’s capability to paying off short-term obligations, which must be immediately accessible or effortless exchanged into serviceable capital. For prospective business creditors, investors can gain insight into a company’s liabilities through the total liabilities to net worth ratio, where the higher the ratio indicates less protection ensured to investors. Depending upon the industry, solvency ratios can vary although universally solvency ratios that reflect lower solvency than the industry benchmark serves as precursors that an individual or company may experience financial difficulties in the foreseeable future.
Read this Term or ability to meet its financial, statutory, contractual, or other obligations
Obligations
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you or will owe you money that is considered an obligation. Different Types of ObligationsBonds, banknotes, and coins are examples of obligations because they assure users that they are accredited with the face value of that item. Obligations play a considerable role in personal finance and should be included in every budget. While every budget is different from one another, individuals can use the Financial Obligation Ratio (FOR) that is published quarterly by the Federal Reserve Board as a good reference point on how to best structure individual budgets. For those in the process of retirement planning, obligations should be scrutinized with a wide scope.These should include typical financial obligations such as mortgage payments and healthcare expenses that may incur. In trading, obligations are dealt in the form of put options and short selling or they may refer to the selling of shares on the next trading day after they were purchased in delivery. When obligations fail to be met and legal proceedings have begun, the severity of the punishment set forth is primarily determined by the terms of the contract although juror and judge intervention may lessen the obligations that must be met to fulfill the contract.
In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you or will owe you money that is considered an obligation. Different Types of ObligationsBonds, banknotes, and coins are examples of obligations because they assure users that they are accredited with the face value of that item. Obligations play a considerable role in personal finance and should be included in every budget. While every budget is different from one another, individuals can use the Financial Obligation Ratio (FOR) that is published quarterly by the Federal Reserve Board as a good reference point on how to best structure individual budgets. For those in the process of retirement planning, obligations should be scrutinized with a wide scope.These should include typical financial obligations such as mortgage payments and healthcare expenses that may incur. In trading, obligations are dealt in the form of put options and short selling or they may refer to the selling of shares on the next trading day after they were purchased in delivery. When obligations fail to be met and legal proceedings have begun, the severity of the punishment set forth is primarily determined by the terms of the contract although juror and judge intervention may lessen the obligations that must be met to fulfill the contract.
Read this Term,” a MAS spokesperson told the publication.
The regulator, however, did not officially reveal its dealings with individual crypto companies, citing confidentiality.
The Asian Crypto Hub
Singapore is one of the most sought jurisdictions for crypto startups after the Chinese crackdown. However, the industry was rattled by the recent collapse of multiple local crypto companies including Three Arrows Capital, Zipmex, Hodlnaut, and Vauld.
The MAS last month revealed the consideration of bringing more restrictions on retail cryptocurrency trading, which might limit retail participation and leverages.
Earlier this year, the city-state already imposed heavy restrictions on cryptocurrency promotions that banned companies from displaying crypto ads in public spaces. These restrictions even forced crypto ATM providers to remove their machines.