As the world is experiencing high volatility in the cryptocurrency market, the Monetary Authority of Singapore states that it will tighten the laws for the crypto players. In the upcoming months, the country shall take firm action against any entity that will conduct any fraudulent or illegal activities. Managing Director Ravi Menon states that most of the jurisdictions of Singapore do not cover the areas like market conduct, reserve backing of stable coins, and consumer protection. International regulators are under constant review and consultations for the same.
According to the Central Bank’s annual report, Menon says that some crypto players are termed as ‘Singapore-based’ by the media even when these firms have little to do with the cryptocurrency regulations in Singapore. However, Menon also says that investing in cryptocurrencies is a hazardous venture. The warnings of MAS against the retail investments of cryptocurrencies attract questions about MAS’s stand on the digital asset ecosystem.
On this, Menon claims that the financial regulators shall dedicate a seminar on the strategies for developing the digital asset system of Singapore by the next month. The seminar shall discuss the position of stablecoins, blockchain, tokenization, cryptocurrencies, digital assets and smart contracts. In addition to this, it will also lay forward the risks and opportunities, shortcomings and potential of the digital assets market. The world sees Singapore at the forefront in terms of licensing and regulatory framework.
As such, the current focus on the crypto regulation in Singapore contains money laundering and terrorist financing risks. As most of the crucial jurisdictions do not cover the areas like market conduct and consumer protection, the regulatory regimes are under constant renovation. Public consultations and reviews are making way under the international standard. Also, the Monetary Authority of Singapore is planning and proposing measures for strengthening the regulations and setting the bodies in the next few months. This shall eventually change the entire digital asset ecosystem of Singapore and its underlying laws.