Financial centers across the globe are looking for multiple ways to handle one of the fastest growing areas of the finance. Since, China’s ban on cryptocurrencies, Singapore is continuously seeking to cement itself as a key player for cryptocurrency business. Going to become next cryptocurrency hub? However, the crypto market still represents only a small proportion of the city-state’s overall economy.
Ravi Menon in his interview to Bloomberg said,
We think the best approach is not to clamp down or ban these things. Instead, MAS is putting in place
strong regulation. So, that they meet the requirements and address the multitude of risks.
What’s happening in surroundings?
Different nations handled this asset differently. China has cracked down on large amounts of activity in recent months. On the other hand, Japan recently allowed dedicated crypto investment funds. Surprisingly, El Salvador has embraced Bitcoin as legal tender. However, in the U.S., while there are an abundance of options for investing in the burgeoning asset class. Regulators are concerned about everything from stable-coins to yield-generating products.
With crypto-based activities, it is basically an investment in a prospective future. However, the shape of which is not clear at this point. Menon has helmed the MAS for about a decade. He further added, “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.”
Ravi Menon on Singapore’s crypto ambitions
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.
See this MAS’s Ravi Menon interview on Singapore’s crypto ambition.
The city state is
interested in developing crypto technology. Understanding blockchain, smart contracts. And preparing ourselves for a Web 3.0 world. Menon said, referring to the third generation of online services. And it will be a key theme during the Singapore Fintech Festival that MAS will host next week.
Menon acknowledged that banks and other financial institutions will face certain challenges. Once the finance is decentralized. He further added, Singapore wants to be
well positioned when an economy of tokenization may come.
Crypto exchanges and MAS license
After what Menon said, almost 170 crypto firms or exchanges are applying for MAS license.
Among these, only three crypto firms have received the much-coveted licenses. While two were rejected. About 30 withdrew their application after engaging with the regulator. Finally, those approved is the brokerage arm of DBS Group Holdings Ltd. That is Singapore’s largest bank.
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