Managing Director of the Monetary Authority of Singapore (MAS), Ravi Menon, addressed the mixed signals from the agency about cryptocurrencies in the public sphere in a seminar celebrated on August 29.
The public claimed that local regulators were spreading a pro-cryptocurrency stance while at the same time threatening more regulation. According to Menon’s new statement, observation is not entirely wrong. He says the agency needs to do “a better job of explaining” the situation.
In general, MAS is in favor of digital assets, as Menon directly stated, “yes to digital asset innovation, no to cryptocurrency speculation.” Regulators want the island country to become a hub of fintech innovation and distributed ledger activity.
Although, according to recent statements, where the problem lies is in the cryptocurrencies themselves.
This is where the “strict and lengthy licensing process” of the MAS for cryptocurrency services, explains Menon. It is also the reason for warnings against and restrictions on retail cryptocurrency investments.
“Cryptocurrencies have taken on a life of their own outside of the distributed ledger, and this is the source of the problems in the crypto world.”
Regulators cite the extreme volatility of the cryptocurrency market, which rules it out from being considered a viable currency or investment asset. The MAS states that the price of such coins does not correlate with the “underlying economic value associated with their use in the distributed ledger.”
These comments come after a series of recent developments from local authorities in Singapore on the issue of digital currencies. On Friday, August 26, the MAS sent questionnaires to customers about business activity and holdings before any final decision.
The cryptocurrency trading platform Crypto.com got approval from Singapore regulators to set up operations in the country on June 22.
In July, had already set its sights on the limitations on retail participation in activities related to cryptocurrency.
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