Singapore could become a leader in the global cryptocurrency economy.
“If and when a cryptoeconomy takes off in some way, we want to be one of the main players,” Ravi Menon, director general of the Singapore Monetary Authority (MAS), said in a pending interview with Bloomberg.com . of next week’s FinTech Festival in Singapore.
“It could help create jobs, create added value, and I think that more than the financial sector, other sectors of the economy will potentially earn,” Menon said.
According to Menon, the only way forward is through careful investment in the world of cryptocurrency. “We believe the best approach is not to repress or ban these things,” he said.
This statement is another endorsement of the digital currency in the Republic. Last week, Senior Minister Tharman Shanmugaratnam, President of MAS, highlighted the future and functionality of cryptocurrency in Singapore.
Singapore’s role in cryptography
In a similar way to Mr. Tharman, Mr. Menon sees the benefits of building a bustling and well-regulated cryptocurrency center in Singapore where it could extend beyond the financial sector.
“With crypto-based activities, it’s basically an investment in a prospective future, the form of which is unclear at this time,” Menon said.
Singapore has been attracting large crypto companies such as Binance Holdings and Gemini, although some companies had faced clashes with regulators around the world.
There is a growing space for cryptographic services in Singapore, as seen by the 170 companies applying for the MAS license, bringing the total number of companies to operate under their Payment Services Act to about 400 after that the law went into effect in January last year. .
The Payment Services Act is the city-state way of formalizing cryptocurrency payment services. In this way, the Singapore government has greater oversight and control of activities.
As authorized entities, customers are assured of central bank competition over corporate operations, making it a better safeguard for users. It is likely that the central bank will take over any company if it does not comply with any regulatory rules.
Strict MAS requirements
Still, Singapore is taking a careful and calculated approach to crypto companies.
Currently, only three crypto companies have received the coveted licenses, while two have been rejected.
About 30 withdrew their application after contacting the regulator. Among those approved is the brokerage arm of DBS Group Holdings, the largest bank in Singapore, which is also a pioneer in creating a platform for digital token trading while offering tokenization services.
Like Mr. Tharman, Mr. Menon cites one of the main concerns of the cryptocurrency is its security risks and the potential for “illicit flows.”
“But not getting into this game, I think, runs the risk of Singapore falling behind. Entering this game early means we can have an advantage and better understand its potential benefits as well as its risks,” Menon said.
That is, as Singapore is “interested in developing crypto technology, understanding the blockchain, smart contracts, and preparing for a web 3.0 world,” he said, referring to the third generation of services on line.
The future of cryptocurrencies in Singapore
Strict regulatory requirements are needed to build a better cryptographic center in Singapore.
The MAS has also leveraged resources to deal with large volumes of potential service operators.
Singapore remains on a list of countries or cities that adopt cryptocurrency. Locations as diverse as Dubai, Miami, El Salvador, Malta and Zug, Switzerland, are also making efforts.
“We don’t need 160 to settle here. Half of them can do it, but with very high standards, I think that’s a better result, ”he said.
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