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 wants to be stringent. “It needs to be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management 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 belongings to retail buyers, Bloomberg reported. Noting that crypto may very well be used for money laundering and terrorism financing, Menon emphasised:
The licensing course of is stringent. And it wants to be as a result of we would like to be a accountable world crypto hub with progressive gamers, but additionally with robust threat administration capabilities.
The Singaporean central financial institution has accepted solely a small fraction of about 170 digital asset candidates. More than 100 firms that utilized for a license to function a crypto business have already failed to meet the licensing necessities.
The MAS managing director defined that the central financial institution has taken a “tough line” on retail crypto investing “because we’re not sure that’s a good idea for retail investors 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’ monitor file and whether or not they have robust company governance constructions in place. In addition, “they need to be familiar with money laundering, terrorist financing risks,” he mentioned.
The central financial institution boss additional said that whereas crypto belongings don’t presently pose a menace to the monetary system, there are money laundering and terrorism financing dangers.
The MAS issued “Guidelines to Discourage Cryptocurrency Trading by General Public” in January stating that “the trading of cryptocurrencies is highly risky and not suitable for the general public.” The central financial institution additionally famous that crypto service suppliers had been actively selling their companies via ATMs in public areas, stressing that it may encourage the general public to commerce “on impulse, without fully understanding the attendant risks.”
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