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…