Ravi Menon, head of the Singapore central bank, thinks that crypto can be used in criminal activities and therefore there should be strict supervision.
He believes these strict regulations will make the country a center of digital assets.
MAS Seeks the Balance on Crypto Regulations
The cryptocurrency industry is still pretty risky for retailers. This was the situation Ravi Menon had warned about. He warned that Bitcoin and altcoins could be used for money laundering and terrorist financing.
This situation should be secured with strict controls, and these controls are mandatory to become a digital crypto center.
“It has to be because we want to be a responsible global crypto hub with innovative players as well as strong risk management capabilities.
Singapore’s Crypto Ecosystem
”Singapore is a high-tech country. Interest in digital assets is also very intense. In a survey, he claimed that 43% of Singaporeans own cryptocurrencies, while 46% will invest in the market in 2022.
Menon claimed that financial regulators have no plans to ban crypto startups, but instead enforce “strong regulation” on them.
He dismissed the possibility of Bitcoin becoming legal tender in Singapore. Menon added that due to its increased volatility, inexperienced investors should not be concerned about it:
“If you want to treat it as an investment asset, you better know what you are doing, not for cowards because of the volatility.”
Local crypto companies can only advertise their services on their own websites or mobile apps or official social media accounts.
In the latest guidance published, he stated that only digital asset service providers located in the country but operating in foreign territories will need to obtain a regulatory license.