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.
“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 would only be possible if cryptocurrency companies do not offer services typical of traditional financial institutions. he said:
“If crypto companies want to do what traditional finance does, they will apply exactly the same regulations (in terms of liquidity, reserves, etc.) under one regulatory system.”
After Singapore-based 3AC collapsed, Singapore’s crypto-supportive stance changed. After the bankruptcy of 3AC, MAS publicly expressed its disgust that a potential cryptocurrency bloc would be a source of malicious activity and took steps to restrict cryptocurrency freedom in the country. .
In October 2022, the country proposed a new bill 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). stipulated. Countries are trying to use blockchain as a technology and reap its benefits, while trying to limit the spread of crypto.