Asian governments are pursuing precautions to combat evolving cryptocurrency scams in this modern crypto-oriented world.
In this modern era of technological advancements, the whole world is accommodated with virtual assets and cryptocurrencies especially after the pandemic of COVID-19. The cryptocurrency market is evolving with the speed of light especially from the past decade. Cryptocurrency is globally attaining momentum. The cryptocurrency market size is expected to increase with the growth rate i.e. GAGR of 30% from the year 2019 to the year 2026. According to a report, blockchain technology is predicted to be a significant contributor to the global GDP, up pacing approximately USD 2 trillion.
Dr. Scott Stornetta claimed that “Bitcoin is undoubtedly a brilliant piece of work. but it is a sort of solution which is looking for a problem. ”
In opposition to this, the world’s renowned scientist claimed that “Electronium is piggybacking an abstract unit of currency onto ETN directly into something that has intrinsic value, which is the idea of the GigFair ecosystem. This leads us to the query for which cryptocurrency provides a solution”
But unfortunately, we are witnessing an unprecedented level of vulnerability. Every coin has two opposing sides. This leads us to the fact that there is a dire need for crypto regulation acquisition to combat illicit money transfers and fraudulent activities. “I emphasize the fact that everyone must stay vigilant and alert while dealing with cryptocurrency-related platforms. Everyone must ensure and investigate before making any investment so that you will not fall prey to fraudulent activities, ” Singapore’s Prime Minister Lee Hsien Loong affirms.
Let us have a deep insight into how the Asian government is prone to the acquisition of cryptocurrency regulations.
Bitcoin Is Surging from Hype to Mainstream
The bitcoin market cap has reached the peak and has increased up to 400 billion US dollars in January 2021. According to the report called Digital assets: NFTs DeFi, cryptos, CBDCs, Bitcoin is up-pacing at a swift pace from hype to the mainstream in parallel to the technological advancements. According to this report, a wide range of digital asset product offerings came into being recent, resulting in massive acquisitions by regulatory financial institutions. The report stated that swift innovations are the result of skepticism, speculations, and those areas of digital assists that provide no exception.
The largest bank of Southeast Asia, DBS was one of the first traditional financial infrastructures in that certain region to launch its own digital exchanges, offering custody services and crypto trading. The size of the cryptocurrency market especially in Singapore is still minuscule as compared to bonds and stocks despite the evolving interests in cryptocurrencies.
Cryptocurrency Regulations in Asia
Numerous countries in Asia are emphasizing cryptocurrency regulations and are generating notices for the prevention of illicit activities and deceptions. Let us acknowledge ourselves more about how countries are reiterating as well as emphasizing precautions and warnings to ensure safety and security and to develop a transparent relationship between organization and client.
Under the payment service act in Singapore, exchanges that offer cryptocurrency trading are regulated as digital payment token service providers.
Tharman Shanmugaratnam claimed that “these entities are regulated primarily for terrorism financing and money laundering risks, considering their limited scale. However, the Act provides the MAS powers to enforce additional measures on digital payment token service providers as per requirements.”
A chief compliance officer at cryptocurrency exchange Binance Samuel Lim affirms that Singapore is expanding fintech and crypto credentials. The nation has increased the local industry through developing homegrown innovations and attracting investors as well as strong businesses.
Japan and Korea
Japan’s financial services agency published an advisory and warning to the public about cryptocurrency risks and is advising investors to acquire precautions. This includes those authentication processes that cryptocurrency exchange is registered with financial service agencies and stays vigilant to not fall prey to fraudulent activities and scams.
Bitcoin prices have surged up to 70,000 US dollars in Douth Korea which proved to be a staggering 21% kimchi premium over bitcoin prices all across the globe. Considering that immense evolution, virtual asset-related ministry meetings were held by South Korean officials and higher authorities. This meeting resulted in the generation of public warning that cryptocurrencies are neither financial investment products nor official currencies. Hence high price volatility can result in huge loss.
The central bank of Sri Lanka has recently published a warning while keeping an eye on emerging cryptocurrency scams and risks as trading volumes and interests of bitcoin as well as numerous other cryptocurrencies are surging locally as well as globally.
A notice was published by the central bank of Sri Lanka, in which it was mentioned that “the central bank of Sri Lanka is here to inform the public of the risks associated with virtual currency investigation. There exist no regulatory safeguards that are related to the utilization, dealing, or investment in Sri Lanka’s virtual currencies. That’s why utilization and investing in Sri Lanka’s virtual currencies is prone to significant risks. ”
This is not the first time that Sri Lanka is generating a warning related to cryptocurrency risks. A similar warning was generated in April 2018. Hence the central bank of Sri Lanka emphasizes the fact that they are not providing any authentication or license to any entity to operate on schemes that include cryptocurrencies. It has not permitted any mining operations, ICOs or virtual currency exchanges.
Cryptocurrency Regulation Will Face Immense Evolution in Future
Acquisition of cryptocurrency regulations will evolve at a swift pace in the near future as this whole world is accommodated with cryptocurrencies. The CEO of global investment bank Goldman Sachs David Solomon forecast rapid evolution which will be faced by cryptocurrency regulations as Bitcoin customer demands are evolving swiftly. The CEO claims that we will continue to find innovative ways to serve our clients with the passage of time.
“I am not going to predict where this evolution will lead us to for regulated financial infrastructures, but we are going to continue to find new methods to serve our clients in the best way possible,” said he.
Solomon reiterated that we will continue to find ways to support our clients in the best way possible as customers’ demands to get involved in space are expanding. We are certainly accommodated by certain regulatory restrictions. Recently, the bank brought back its Bitcoin trading desk, and soon it will be offering a complete spectrum of Bitcoin investment. The firm is observing immense institutional demand for bitcoin.
Ryan's passion is to write technical material. He has a wide variety of writing experience in the technology and fintech sector. When he was in college, he began writing at the age of sixteen. Now he's also writing as an independent influencer for participation pages. Ryan has written a number of media articles and many of them are published in different publications.