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 need to be a accountable world crypto hub with progressive gamers, but in addition with robust danger administration capabilities,” stated 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 Instances Crypto and Digital Asset Summit Wednesday.
The central financial institution chief raised issues concerning the dangers of investing in crypto belongings 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 need to be a accountable world crypto hub with progressive gamers, but in addition with robust danger administration capabilities.
The Singaporean central financial institution has accredited solely a small fraction of about 170 digital asset candidates. Greater than 100 firms that utilized for a license to function a crypto enterprise have already failed to fulfill 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 undecided that’s a good suggestion for retail traders to be dabbling in cryptocurrencies.” He was quoted as saying:
I feel many world regulators share comparable issues 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 buildings in place. As well as, “they must be accustomed to cash laundering, terrorist financing dangers,” he stated.
The central financial institution boss additional acknowledged that whereas crypto belongings don’t presently 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 Normal 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 providers via 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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