Singapore authorities decided to limit speculation with cryptocurrencies

Singapore authorities decided to limit speculation with cryptocurrencies

Singapore authorities decide to limit speculation with cryptocurrencies

The Monetary Authority of Singapore (MAS) intends to develop the digital asset ecosystem while limiting “speculative trading in cryptocurrencies”. This was stated by the head of the regulator Ravi Menon.

“Cryptocurrencies have taken on a life of their own outside of a distributed ledger – and that's the source of the industry's problems. […] Cryptocurrency speculation is something that the MAS frowns upon and seeks to limit,” Menon emphasized at the Green Shoots seminar.

According to him, the task of the regulator is to create an innovative and responsible ecosystem of digital assets in Singapore. The official added that the FDA considers cryptocurrencies “unusable as money and extremely dangerous for retail investors.”

“MAS sees good potential in stablecoins provided that they are securely backed by high quality reserves and well regulated,” Menon added.

The regulator also welcomes wholesale CBDCs, “especially for cross-border payments and settlements.” At the same time, the head of MAS emphasized that he did not hear convincing arguments in favor of retail digital currencies of the central bank in Singapore.

“I hope this presentation has clearly shown that MAS's stimulating rhetoric regarding digital asset transactions and the restrictive stance regarding cryptocurrency speculation do not contradict each other. It is truly a synergistic and holistic approach to developing Singapore as an innovative and responsible global digital asset hub,” Menon concluded.

In July, the FDA announced tighter regulation of cryptocurrencies to limit investor risk. Prior to this, the authorities promised “brutally and inexorably” to fight violations in the industry.

Recall that in August, Bloomberg sources reported that MAS sent out requests to cryptocurrency companies about their activities and assets.

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