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 his hope that Singapore could become one of the world’s leaders in the cryptocurrency space.
In an interview with Bloomberg, the managing director of MAS shared three 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 lead to positive changes in the economy and society. Singapore must be prepared for any of these scenarios, so 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 supervisor will enforce “strong regulation” 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 dealing only with Bitcoin and only experienced investors due to its increased volatility.
Singapore is very loyal to cryptocurrencies, including stablecoins. MAS Singapore Chairman Tharman Shanmugaratnam recently announced that he sees several options for using stablecoins, but such assets need to be regulated to combat “illegal financing”.
Singapore is also conducting research on the development and application of government digital currency. For this, the regulator selected 15 companies that will help create and launch the digital currency of the Central Bank. However, the friendly attitude towards the cryptocurrency industry did not stop the regulator from adding the Binance website to the list of resources that investors need to be careful about.
