The Managing Director of the central bank of Singapore has stated that the country is establishing a regulatory framework to evolve its crypto industry to a global scale.
Best Not To Clamp Down: MAS Chief
Ravi Menon, the Managing Director of the Monetary Authority of Singapore (MAS), has stated that Singapore is seeking to evolve into a key player in the global crypto industry by establishing strong regulations that can help crypto firms address different avenues of risks for clients. Menon also clarified that instead of adopting a ban-all all kind of approach, like China, the MAS is focusing on laying down a proper regulatory framework that can navigate legal crypto activities in the country.
He stated,
“With crypto-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point. But not to get into this game, I think risks Singapore being left behind. Getting early into that game means we can have a head start, and better understand its potential benefits as well as its risks.”
According to Mr. Menon, the MAS is looking into developing crypto and blockchain technology to prepare the country for the third generation of the internet. Previously, MAS had joined the central banks of Australia, Malaysia, and South Africa in an initiative to test and develop a shared platform to enable cross-border digital currency transactions.
Regulations To Favor Quality Over Quantity
Singapore has already gained a reputation as a global wealth hub, and its crypto-friendly policies have attracted many firms that have faced regulatory opposition elsewhere in the world. Therefore, the MAS is looking to insert safeguards in place to prevent illicit activities and other risks. The regulator is putting in more time, energy, and resources to assess license applications to ensure they meet its high requirements. Since then, only 3 crypto firms have had their applications approved, while two others were rejected. Menon has clarified that the regulator is opting for quality over quantity when reviewing crypto firms that want to set up shop in Singapore. The intention behind this is to reap benefits beyond the financial sector.
“If and when a crypto economy takes off in a way, we want to be one of the leading players. It could help create jobs, create value-add, and I think more than the financial sector, the other sectors of the economy will potentially gain.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
