The Financial 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 danger administration capabilities,” mentioned the central financial institution chief.
Singapore’s Crypto Regulation Must Be ‘Stringent’
Financial Authority of Singapore (MAS) Managing Director Ravi Menon talked about cryptocurrency regulation on the Monetary Occasions Crypto and Digital Asset Summit Wednesday.
The central financial institution chief raised issues concerning the dangers of investing in crypto property to retail traders, Bloomberg reported. Noting that crypto could possibly 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 danger administration capabilities.
The Singaporean central financial institution has accredited solely a small fraction of about 170 digital asset candidates. Greater 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 “powerful line” on retail crypto investing “as a result of we’re unsure that’s a good suggestion for retail traders to be dabbling in cryptocurrencies.” He was quoted as saying:
I believe many world regulators share comparable issues about retail publicity to cryptocurrencies.
Menon detailed that the MAS appears to be like on the candidates’ monitor report and whether or not they have sturdy company governance constructions in place. As well as, “they have to be accustomed to cash laundering, terrorist financing dangers,” he mentioned.
The central financial institution boss additional said that whereas crypto property don’t at the moment pose a risk to the monetary system, there are cash laundering and terrorism financing dangers.
The MAS issued “Tips to Discourage Cryptocurrency Buying and selling by Basic Public” in January stating that “the buying and selling of cryptocurrencies is very dangerous and never appropriate for most of the 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 may encourage the general public to commerce “on impulse, with out totally understanding the attendant dangers.”
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