According to the South China Morning Post report, Singapore is seeking to cement itself as a key player for cryptocurrency-related businesses as financial centers worldwide grapple with approaches to handle one of the fastest-growing areas of finance. “We think the best approach is not to clamp down or ban these things,” said Ravi Menon, managing director of the Monetary Authority of Singapore, which regulates banks and financial firms.
The Monetary Authority of Singapore is implementing strong crypto regulations.
The Monetary Authority of Singapore is putting “strong regulation” in place so firms that meet its requirements and address the multitude of risks can operate, Menon added. Nations differ vastly when it comes to how they handle cryptocurrency: China has cracked down on large amounts of activity in recent months, Japan only recently allowed dedicated cryptocurrency investment funds – though El Salvador has embraced bitcoin as legal tender. While there are many options for investing in the burgeoning asset class in the US, regulators are concerned about everything from stablecoins to yield-generating products.
The former MAS official wants the country to take a head start.
“With cryptocurrency-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point,” said Menon, who has helmed the MAS for about a decade. “But not to get into this game, I think, risks Singapore being left behind. Getting early into that game means we can have a head start and better understand its potential benefits as well as its risks.” The stakes are high for the small island nation, which has already earned a reputation as a global wealth hub. Singapore must raise its safeguards to counter risks, including illicit flows, Menon said.