Singapore may enhance crypto regulations to do more tasks. For example, it is included in a global push to reduce the chances or risks after failing in business rocked the industry. The Monetary Authority of Singapore wants to consult on suggested steps in September or October. In this regard, Managing Director Ravi Menon responded after releasing the central bank’s annual report Tuesday.
In his response, Menon said that while there are some positive developments, such as cryptocurrencies being used as payment systems and distributed ledger technology being used for financial services, they still need further regulatory oversight and monitoring.
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He added that Singapore will continue to be cautious about how it approaches new technologies like digital currencies because blockchain technology is still evolving and has not yet been fully tested by regulators worldwide.
“We must be cautious about how we approach new technologies like digital currencies because blockchain technology is still evolving,” he said
To date, no cryptocurrency exchange has been officially approved by the Monetary Authority of Singapore (MAS), but it has allowed operators to submit applications for approval. MAS has said that it will consider whether an exchange is fit for the issuance of virtualcurrency licenses when submitting its application.
However, this does not mean that MAS has approved any exchanges yet. It said that it would only consider applications once they are submitted under the regulatory and licensing requirements set out by law and regulation.
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MAS also noted that it does not have any information about consumer protection measures taken by these exchanges which could help protect investors from fraudulence or illegal activities on their platform.”
The cracks in global crypto regulation have been visible for years now, but this year’s market meltdown has only made them more apparent. A lot of money is locked up with bankrupt digital asset lenders and creditors, and they are looking to claw back their losses from collapsed hedge fund Three Arrows Capital.
The turmoil collected pace in early May while the TerraUSD stablecoin crumbled from its dollar peg. A lot of companies worked outside the scope of available regulations where the failures highlighted risky business practices. It includes the web of debts through which multiple industries’ top players are connected. Now, it is seen that regulators from the US to Singapore want to patch the holes while acknowledging that the effort will need more global coordination.
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In response to concerns about whether or not these new regulations will affect businesses operating in Singapore, MAS deputy managing director Matthew Tee said: “We do not intend to regulate or restrict access to any cryptocurrency or digital currency exchange platform.” He added: “This is just a matter of ensuring that any company or individual operating within our jurisdiction complies with relevant legislation.”
Menon claims that MAS would host a conference in the future month. He continued by saying that they would strive to ascertain how regulatory and developmental techniques would function for the Singapore vision. A few cryptocurrency players have reported on the regulations relating to cryptocurrency.
