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Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), said of the agency’s mixed signals regarding cryptocurrencies in the public sphere: seminar August 29th.
The public argued that local regulators were spreading positive sentiment toward cryptocurrencies while threatening more regulation. According to Menon’s new statement, this observation is not entirely wrong. He says the agency needs to do a “better job of explaining” the situation.
As Menon directly stated, We are in favor of digital asset innovation and against cryptocurrency speculation. Overall, MAS supports digital assets. Regulators want the island nation to become a hub for fintech innovation and distributed ledger activity.
According to a recent statement, the problem lies with the cryptocurrency itself.
This is where MAS’s “rigorous and lengthy licensing process” for crypto services comes into play, Menon explained. It is also the reason for the warning against retail investment in cryptocurrencies and the retail restrictions on cryptocurrencies.
Cryptocurrency has taken on a life of its own outside of distributed ledgers.
Regulators have cited the extreme volatility of the cryptocurrency market to prevent it from being considered a viable currency or investment asset. MAS claims that the prices of these currencies are not correlated with the underlying economic value associated with their use on distributed ledgers.
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These comments come after a series of recent developments from Singapore’s local authorities on the topic of digital currencies. On Friday 26th August, MAS sent out a questionnaire to its clients regarding their business activities and holdings prior to making a final decision.
Cryptocurrency trading platform Crypto.com has received approval from Singapore regulators to begin operations in Singapore on June 22nd.
In July, we were already looking at restrictions on retail participation in cryptocurrency-related activities.
