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Despite Singapore’s best efforts to become one of the world’s crypto hubs, it is notorious for being a difficult terrain for crypto.
In the latest crypto regulation news, Singapore is looking to establish a more stringent rule for the use of crypto. According to a Bloomberg report, the country’s top regulator – The Monetary Authority of Singapore (MAS), aims to ensure that retail investors are effectively protected.
New Crypto Regulation to Guarantee Maximum Investor Protection
While MAS may be considering additional regulatory measures, the financial watchdog is not looking to outrightly ban crypto trading activities. Especially considering the fact that the crypto space is borderless, an outright ban on crypto-related activities may not work.
But according to the regulator, there is a possibility that it starts running customer suitability tests while it revokes access to credit facilities for crypto trading. This was disclosed during a seminar, earlier on Monday by the MAS Chief, Ravi Menon.
Menon also noted that all these new steps are in line with the stance of MAS regarding cryptocurrencies. He says MAS believes that crypto should not be used as a replacement for money. He also reiterated how “highly hazardous” cryptocurrencies tend to be for retail investors.
Singapore’s Stance on Crypto Leaves Players Frustrated
Singapore is notorious for being difficult terrain for crypto. This is despite the nation’s best efforts to become one of the world’s crypto hubs. But for all those efforts, Singapore has shown stricter regulations than most, albeit in both paper rules and actions. And expectedly, this has brought massive criticism to MAS for creating an impossible licensing regime.
Interestingly, just two months ago, Sopnendu Mohanty – CFS at the MAS – categorically stated that the regulator will go hard in its strive to sanitize the crypto space and rid it of bad actors. In addition to what happened with many Singapore-based crypto firms over the past few months. Especially with the situation of Three Arrows Capital which got liquidated, immediate regulatory action is only imperative.
However, Mr Menon maintains that the MAS is not ready to compromise its licensing processes just so crypto players could get licensed. He says in part:
“We have been prioritising those who demonstrate strong risk management capabilities and the ability to contribute to the growth of Singapore’s fintech and digital asset ecosystem.”
The agency will consult the general public on the amendments by October this year.