MAS Singapore Managing Director Ravi Menon said the regulator would not ban cryptocurrencies as they could become a key factor in the country’s future development.
Ravi Menon, head of the Monetary Authority of Singapore (MAS), sees great potential in the cryptocurrency industry. According to him, the regulator will not prohibit this asset class but will prepare an appropriate regulatory framework for the effective regulation of cryptocurrencies. Menon also expressed hope that Singapore could become one of the world’s leaders in the cryptocurrency space.
In an interview with Bloomberg (Video Below), the managing director of MAS shared some possible scenarios for the development of the cryptocurrency industry in the country. The introduction of cryptocurrencies may lead to nothing, cause chaos in the financial system, or can lead to positive changes in the economy and society, so Singapore must be prepared for any of these scenarios, and the authorities must have a good understanding of cryptocurrency, blockchain, and smart contracts.
Unlike China, Singapore’s MAS is not going to ban cryptocurrency in the country. Instead, the MAS will enforce strong regulations so that companies and individuals are protected when dealing with this asset class.
“We believe the best approach is not to prohibit cryptocurrencies but to regulate them, as there are serious risks of money laundering and terrorist financing through this asset class,” Menon said.
However, he rejected the possibility that bitcoin will become an official means of payment in Singapore, stating that the cryptocurrency does not have the status of “real money”. He advised that only experienced investors should deal in Bitcoin due to its increased volatility.
Singapore is very loyal to cryptocurrencies, including stable coins. MAS Singapore Chairman Tharman Shanmugaratnam recently said he sees several use cases of stable coins, but such assets need to be regulated to combat illegal financing.
Singapore is also conducting research on the development and application of government-owned digital currency (CBDC). For this, the regulator selected 15 companies that will help create and launch the digital currency of the Singapore Central Bank. However, the friendly attitude towards the cryptocurrency industry did not stop the regulator from adding the Binance website to the investor alert list.
Watch Blommberg Video:
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
