The Monetary Authority of Singapore (MAS), the country’s central bank and crypto sector regulator, said the licensing process for digital asset service providers should be rigorous. “You have to because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities,” the head of the central bank said.
Singapore Crypto Regulations Need To Be ‘Tighter’
Monetary Authority of Singapore (MAS) Managing Director Ravi Menon spoke about cryptocurrency regulation at the Financial Times Crypto and Digital Asset Summit on Wednesday.
The head of the central bank expressed concern about the risks of investing in crypto assets for retail investors, Bloomberg reported. Noting that crypto can be used for money laundering and terrorist financing, Menon stressed:
Strict licensing process. And it must be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities.
Singapore’s central bank has approved only a small fraction of 170 digital asset applicants. More than 100 companies are applying for licenses to operate crypto businesses already failed to meet license terms.
MAS’s managing director explained that the central bank has taken a “tough line” on retail crypto investments “because we’re not sure if it’s a good idea for retail investors to dabbling in cryptocurrencies.” He was quoted as saying:
I think many global regulators share similar concerns about retail exposure to cryptocurrencies.
Menon explained that MAS sees the track record of applicants and whether they have a strong corporate governance structure. In addition, “they need to be familiar with money laundering, the risk of terrorist financing,” he said.
Central bank leaders further stated that crypto assets are now not a threat to the financial system, there is a risk of money laundering and terrorist financing.
MAS issued “Guidelines for Preventing Cryptocurrency Trading by the General Public” in January stated that “trading cryptocurrencies is very risky and unsuitable for the general public.” The central bank also noted that crypto service providers have been actively promoting the service ATMs in public areasemphasizes that it can encourage the public to trade “on impulse, without knowing the risks involved.”
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