Singapore will shape itself as a viable alternative for crypto investors who have been bogged down by a lack of regulatory clarity in other financial hubs around the world.
As crypto’s significance in various sectors continues to increase, Ravi Menon, the managing director of the Monetary Authority of Singapore (MAS), confirmed that the country would seek to establish a framework to adopt crypto without “clamping down” or “banning” cryptocurrencies or the tech behind them outright.
Menon and the MAS believe it’s more efficient to seek to establish a regulatory framework that adopts these assets than banning them outright.
The news comes as the Commonwealth Bank of Australia confirmed that it would be launching a crypto trading service.
MAS is determined to put “strong regulation” in place so that businesses are aware what to expect and know their legal rights and operational limits, Menon explained.
He also noted that he was aware of how different nations regulate crypto. China has decided on an outright ban, suspending all activity. El Salvador, on the other hand, turned Bitcoin (BTC) into a legal tender.
“With crypto-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point”, Menon explained.
Menon believes Singapore still risks being left behind unless the country acts quickly to adopt clear-cut regulatory rules.
He argued that getting into the market early would enable Singapore to establish safeguards, curb illicit activities and better understand the potential benefits and risks of adopting cryptocurrency ahead of the pack.
Singapore is more interested in rolling out all aspects of blockchain technology, including crypto and smart contracts. Menon believes that the adoption of this tech will help prepare Singapore prepare or a “Web 3.0 world”.