Last Updated on July 12, 2022 by Bitfinsider

Three Arrows Capital, a cryptocurrency hedge fund, is currently being liquidated, and its impact can be felt across the sector. More cryptocurrency businesses worldwide are preparing for additional bankruptcy as a result of 3AC’s collapse.

Several financial officials have expressed their displeasure at the sudden decline in pricing, calling for stricter regulations on the industry.

Singapore’s crypto industry is experiencing major challenges

Industry sources claim that the Monetary Authority of Singapore (MAS), which has so far been supportive of cryptocurrencies, may modify its stance on the market. According to KPMG data, investment in Singapore’s cryptocurrency business increased tenfold from 2021 to $1.48 billion in 2022. However, given the state of the market and the demise of 3AC, business leaders are wary of impending rules in Singapore.

The entire crypto sector is being impacted by the 3AC collapse. According to local media reports, the investment management firm Mirana is suing 3AC in Singapore over a loan it gave to the cryptocurrency hedging business. Voyager, a cryptocurrency lender, filed for bankruptcy last week after 3AC failed to pay a $650 million obligation.

The laws governing cryptocurrencies are likely to remain ambiguous

When it comes to crypto legislation, the majority of Asian regulators have always been strict. The latest market fall may encourage more nations to enact stricter rules since they are already taxing cryptocurrencies heavily. Previously, India taxed cryptocurrencies by 30%, which led to significant concern within the Indian crypto community. If Singapore moves forward with stricter anti-crypto policies, other nations may follow following and enact legislation along those lines.

After Terra LUNA’s demise, South Korea established a special committee to act as a watchdog over the cryptocurrency sector and develop and oversee policy. If this pattern continues, it is likely that crypto rules in most nations will continue to be ambiguous for some time.

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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.