The Central Bank of Singapore threatened unscrupulous participants in the crypto industry

The Central Bank of Singapore threatened unscrupulous participants in the crypto industry

The Central Bank of Singapore has threatened unscrupulous participants in the crypto industry

Singapore will “brutally and relentlessly tough” crack down on violations in the cryptocurrency industry. This was stated by the director of the fintech department of MAS Sopnendu Mohanty in an interview with the Financial Times.

The specialist questioned the value of most cryptocurrencies and said that within three years there will be an alternative in the form of digital currencies of central banks, which are supported by states.

“Many in the crypto industry consider us unfriendly. My answer: friendly to what? Towards a real economy or some unreal economy?” he added.

According to him, MAS is not going to turn a blind eye to unscrupulous market participants. He stressed that if such players are found, the response of the department will be “cruel and inexorably tough.” 

Mohanty noted that Singapore has a “painfully slow” and “extremely draconian due diligence process” for licensing crypto businesses.

According to the regulator, in 2021, about 100 companies either withdrew their applications for a license or were refused. 

The brokerage division of the largest bank in Singapore DBS Bank and the Australian cryptocurrency exchange Independent Reserve have approval for work. In March 2022, the Authority also granted a license to provide services related to cryptocurrencies and other digital assets to Paxos.

However, MAS is generally not opposed to digital assets. He said that a consortium of companies led by Mojaloop and Temasek is seeking to introduce digital currency into the system of cross-border payments.

“We are tirelessly working on the infrastructure of the economy of the future, which can be based on digital assets,” he said.

In May 2022, MAS initiated the Guardian project. Within its framework, the regulator, together with JPMorgan, Marketnote and DBS, expects to explore the possibilities of DeFi protocols.

In February, DBS Bank announced its intention to open a digital asset trading platform focused on individual investors by the end of 2022.

Recall that in January 2022, MAS recommended that companies in the industry not advertise their services to the general public to avoid the risk of speculation.

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