Singapore is setting up regulations allowing crypto companies to operate in the country: Ravi Menon, the managing director of Singapore‘s central bank, explained that with crypto-based activities, it is basically an investment opportunity.
According to Menon, firms that meet requirements can operate in Singapore but they did not believe clamping down on or banning them is the best approach.
Singapore could be left behind if they don’t get into this game. Getting early in that game means they get a head start, and they can better understand both its potential benefits and its risks.
Singapore Seeks To Establish Itself As A Global Leader In Cryptocurrency-related Businesses
Ravi Menon, managing director of Singapore’s Monetary Authority, a government agency that regulates banks and financial firms, says that clamping down or banning these practices isn’t the best approach.
“Strong regulation” is instead being implemented by MAS, so firms that meet its requirements and address the multitude of risks can operate, he said in an interview.
Various countries handle crypto in vastly different ways: the Chinese have cracked down on large amounts of activity in recent months, Japan has only recently allowed dedicated crypto investment funds, while El Salvador has accepted Bitcoin as legal tender.
Although there are plenty of investment options for the burgeoning asset class in the U.S., regulators are concerned about everything from stablecoins to yield-generating products.
Menon: You’re Investing In A Future That’s Unclear
Menon, who has been MAS’s head for about a decade, said crypto-related activities are basically investments in the future, the shape of which isn’t clear.
“Singapore could be left behind if we don’t get into this game”, Menon said. Getting early in that game means we get a head start, and we can better understand both its potential benefits and its risks.
Menon said Singapore must improve its safeguards to counter risks, including illicit flows, which have become a major concern for the small island nation.
A key theme during the Singapore Fintech Festival this year will be the third generation of online services, a theme he said Singapore is interested in developing crypto technology, understanding blockchains and smart contracts.
Singapore To Build a “Tokenized Economy”
Despite facing certain challenges as a result of the decentralization of finance, Menon said Singapore wants to be “well-positioned” for 2030, when “a tokenized economy” may emerge.
In addition to Singapore, other cities such as Dubai, Miami, El Salvador, Malta, and Zug, Switzerland, also have crypto ambitions.
Several players balk at government officials’ attempts to impose guardrails, since the crypto industry had little regulation when it grew up.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
