Ravi Menon, head of the Monetary Authority of Singapore (the central bank of the country), said the country’s cryptographic regulations involve a “strict” licensing process. He believes that strict rules could reshape a city-state as a global digital asset hub.
MAS seeks a balance of cryptographic regulations
Despite its rapid growth in popularity over the last few years, the crypto sector remains a dangerous area for private investors. This is what MAS Managing Director Ravi Menon recently warned. interview.. He warned that Bitcoin and Altcoin could be used for money laundering and terrorist financing.
Therefore, local governments need to implement comprehensive rules in the market to provide safety and clarity to a wide range of societies. Menon said Singapore has the ambition to become a global crypto hub, but the licensing process must be “rigorous” to achieve that goal.
“And that’s because we want to be a responsible global crypto hub with strong risk management capabilities, not just innovative players.”
Menon explained that Singapore’s central bank is willing to find a balance between encouraging the fast-growing digital asset sector and imposing appropriate rules on it. Executives warned that individuals should be “familiar with the risks of money laundering and terrorist financing.” That said, he doesn’t think it’s wise for private investors to “get their hands on cryptocurrencies.”
Meanwhile, he said Bitcoin and Altcoin are not currently threatening the country’s financial network.
Singapore crypto ecosystem
Asian city-states are one of the most high-tech developed countries. So it’s no wonder that digital assets are so popular with the population.Recent research clearly Forty-three percent of Singaporeans own cryptocurrencies and 46% claimed to invest in the market in 2022.
At the same time, authorities are primarily positive about asset classes.A few months ago, Menon Claim Financial regulators have no plans to ban cryptocurrency efforts, but rather to implement “strong regulations.”
Nevertheless, he rejected the possibility of Bitcoin becoming fiat currency in Singapore because the assets cannot be classified as “real money”. Executives added that inexperienced investors should not deal with the increased volatility.
“If you want to treat it as an investment asset, you know what you’re doing. It’s not for the timid because of volatility.”
Earlier this year, MAS Prompted Local crypto companies should not promote their services in public areas or engage with third parties, including social media influencers. They can only advertise on their website, mobile application, or official social media accounts.
Singapore Parliament this month issued Another guideline. It states that only domestically-based and foreign-based digital asset service providers are required to obtain a regulatory license.