Singapore is determined to develop strong crypto regulations to ensure regulatory clarity and enforce compliance. This is according to Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS).
Instead of tackling the spread of cryptocurrency companies, the Singaporian regulator prefers to put in place regulations that will allow companies to meet MAS’s requirements and address the identified risks to operate.
Menon said, “With crypto-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point.”
According to the Managing Director, not getting “into the game” might leave Singapore behind but now, the country has a head start and better understands its benefits as well as its potential risks.
Menon explained that, considering Singapore’s reputation as a global wealth hub, the country had to bolster its safeguards to combat the risks related to illicit financial flows.
According to the regulator’s head, Singapore is interested in developing crypto technology, further understanding blockchain, developing smart contracts and preparing for Web 3.0.
Singapore’s welcoming stance on crypto has allowed the country to attract major businesses such as Binance and Gemini. Companies such as these have recently had rows with other countries amidst crypto crackdowns.
So far, around 170 firms have applied to the MAS for a Singaporean license. This brings the total companies that seek to operate under the country’s Payment Services Act to around 400 since January 2020.
The Singaporean regulator has assigned additional resources to assess the rising number of applications. Despite this, the Managing Director has said that the regulator is in no rush to review them. Instead, its priority is to ensure that companies meet their requirements.
The latest developments come after Singapore has made plans to position the country as a global crypto center.
