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The Monetary Authority of Singapore (MAS), the country’s central bank and the regulator of the cryptocurrency sector, says that its licensing process for digital asset service providers needs to Strict. “That is needed because we want to be a global crypto hub that is responsible for innovative players, but also has strong risk management capabilities,” said the central banker.
Singapore’s crypto regulation needs to be ‘strict’
The Monetary Authority of Singapore (MAS) Ravi Menon spoke about crypto regulation at the Financial Times Cryptocurrency and Digital Assets Summit on Wednesday.
The chief of the central bank has raised concerns about the risks of investing in crypto assets for retail investors, Bloomberg reported. Noting that cryptocurrencies can be used to launder money and finance terrorism, Menon emphasized:
The licensing process is very strict. And that’s because we want to be a global crypto hub that is responsible for innovative players, but also has strong risk management capabilities.
Singapore’s central bank has only approved a fraction of the roughly 170 digital asset registrants. More than 100 companies that have applied for a license to operate a cryptocurrency business have failed to meet the licensing requirements
The MAS CEO explained that the central bank has taken a “hard line” on retail crypto investments “because we’re not sure it’s a good idea for retail investors.” start getting into crypto.” He is quoted as saying:
I think many global regulators share similar concerns about retail exposure to cryptocurrencies.
Menon detailed that MAS looks at candidates’ track records and whether they have a strong corporate governance structure. In addition, “they need to be familiar with the risks of money laundering, terrorist financing,” he said.
The central banker added that while crypto assets do not currently pose a threat to the financial system, there are risks of money laundering and terrorist financing.
The MAS issued a “Guide to Discourage Cryptocurrency Trading by the Public” in January stating that “trading in cryptocurrencies is risky and unsuitable for the general public.” The central bank also noted that crypto service providers have been actively promoting their services through ATMs in public areas, noting that it could encourage the public to transact. translated “on impulse, without fully understanding flight attendant risks”.
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