Singapore’s Central Bank: We Want to Be a Responsible Global Crypto Hub

The Monetary Authority of Singapore (MAS), the nation’s central financial institution and the regulator of the crypto sector, says that its licensing course of for digital asset service suppliers must be stringent. “It must be as a result of we wish to be a accountable world crypto hub with revolutionary gamers, but in addition with sturdy threat administration capabilities,” mentioned the central financial institution chief.

Singapore’s Crypto Regulation Needs to Be ‘Stringent’

Monetary Authority of Singapore (MAS) Managing Director Ravi Menon talked about cryptocurrency regulation on the Financial Times Crypto and Digital Asset Summit Wednesday.

The central financial institution chief raised considerations relating to the dangers of investing in crypto property to retail buyers, Bloomberg reported. Noting that crypto might be used for cash laundering and terrorism financing, Menon emphasised:

The licensing course of is stringent. And it must be as a result of we wish to be a accountable world crypto hub with revolutionary gamers, but in addition with sturdy threat administration capabilities.

The Singaporean central financial institution has authorised solely a small fraction of about 170 digital asset candidates. More than 100 corporations that utilized for a license to function a crypto enterprise have already failed to meet the licensing necessities.

The MAS managing director defined that the central financial institution has taken a “robust line” on retail crypto investing “as a result of we’re undecided that’s a good suggestion for retail buyers to be dabbling in cryptocurrencies.” He was quoted as saying:

I feel many world regulators share related considerations about retail publicity to cryptocurrencies.

Menon detailed that the MAS seems to be on the candidates’ observe document and whether or not they have sturdy company governance constructions in place. In addition, “they should be acquainted with cash laundering, terrorist financing dangers,” he mentioned.

The central financial institution boss additional acknowledged that whereas crypto property don’t at the moment pose a menace to the monetary system, there are cash laundering and terrorism financing dangers.

The MAS issued “Guidelines to Discourage Cryptocurrency Trading by General Public” in January stating that “the buying and selling of cryptocurrencies is very dangerous and never appropriate for most people.” The central financial institution additionally famous that crypto service suppliers had been actively selling their companies by means of ATMs in public areas, stressing that it might encourage the general public to commerce “on impulse, with out totally understanding the attendant dangers.”

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