Given the high risks associated with cryptocurrencies, the Monetary Authority of Singapore (MAS) has stepped up the process of approving crypto licenses for digital asset providers, making the regime a “responsible global crypto hub”.
Ravi Menon, Managing Director of MAS, emphasized establishing a stricter process in issuing legal licenses for companies to operate cryptography. He cited many reasons in the discussion, including the misuse of cryptography for money laundering and terrorist financing.
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Ravi while talking at the Digital Asset Summit and in an interview with the Financial Times Said,
The licensing process is rigorous because we want to be a responsible global crypto hub with strong risk management capabilities as well as innovative players. We only approve applicants with a strong governance structure, appropriate and appropriate board and management, and confirm their performance.
The Singaporean government has steadily enacted cryptographic regulations over the past few years. And MAS started cracking down on cryptocurrency, curbing cryptocurrency advertising, ATM operator shuts down..
MAS has been proactive in ensuring accurate regulation and mitigating the greatest risks possible.However, even one out of 100 applications Not achieved Licensed because the license requirements could not be met. Similarly, legal authorities to date have approved some of the more than 170 applicants for digital asset providers.
MAS Criteria for Approving Cryptographic Licenses
In particular, MAS reportedly did not approve the license for Binance, the world’s largest cryptocurrency exchange, in September 2021, saying that asset providers do not meet the standards of MAS’s AML and KYC requirements.Therefore, Binance Withdrew the application Instead of damaging the reputation in the media.
“But they lack regulated experience,” said the head of the central bank, commenting that many crypto enthusiasts “have innovative, agile, and original ideas.” Therefore, we need to solve cultural problems. “
MAS requirements for obtaining a license:
- Performs due diligence on all transactions of digital assets committed on the platform.
- Ensure the consistency of your personal transactions by monitoring customer relationships.
- Track anonymity and misuse of new products or services by conducting risk assessments on a regular basis.
- Meet cyber hygiene and technology risk management requirements.
- Follow the value transfer rules.
Meanwhile, the central bank has taken a “tough line” across cryptocurrency retail investments, Menon said. He adds.
[This is] It’s not a good idea for private investors to get their hands on cryptocurrencies. I think many global regulators share similar concerns about retail exposure to cryptocurrencies.
Hodlnaut, Coinhako, Digital Treasures Center, Revolut, and Paxos have been granted principle licenses from MAS to manage digital assets in Singapore.
Recently, MAS has added Luno, a retail-focused company, to its list of approved entities. Sherry Go, Reno’s Singapore Country Manager, said:
In our view, the requirements are reasonable and consistent with our goal of providing a secure environment for Singapore cryptocurrency users.
Featured image from Pixabay and chart from TradingView.com