Singapore financial watchdog’s chairman questions if regulating crypto legitimizes speculation

Tharman Shanmugaratnam, Chairman of the Monetary Authority of Singapore (MAS), said: talked VulcanPost, who gave controversial views on cryptocurrency regulation at WEF23 and wondered if cryptocurrency regulation could justify speculation report.

Shanmugaratnam said:

“Whether it’s cryptocurrencies or traditional finance, I think things like money laundering have to be regulated – it’s very clear.

But more than that, if you’re thinking of regulating cryptocurrencies in the same way you regulate banks and insurance companies, I think you need to take a step back and ask some basic philosophical questions. . A little crazy, actually?

Instead, Shanmugaratnam said lawmakers could stay away from the crypto space and make it clear that the entire field is unregulated and investors must invest at their own risk. I claimed.

Regulation may be unavoidable

Shanmugaratnam also acknowledged that this is only possible if cryptocurrency companies do not offer services typical of traditional financial institutions. he said:

“If a cryptocurrency company wants to do what traditional finance does, it will apply exactly the same regulations (in terms of liquidity, reserves, etc.) under one regulatory system.”

singapore crypto

After Singapore-based 3AC collapsed, Singapore’s crypto-supporting stance changed. After the bankruptcy of 3AC, MAS publicly expressed its displeasure with the potential for malicious activity in a potential cryptocurrency zone and took steps to restrict cryptocurrency freedom in the country. rice field.

In October 2022, the country proposed new legislation to regulate cryptocurrencies and stablecoins. The bill accepted crypto-assets as “inherently speculative and risky” and proposed to take action accordingly.

In November 2022, MAS will require all banks in Singapore to hold $125 capital for $100 exposure to risky crypto assets, including Bitcoin (BTC) and Ethereum (ETH). ruling. While trying to limit the spread of crypto, countries are trying to use blockchain as a technology and reap its benefits.

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