The central bank of Singapore is looking to become the ground for all the latest and greatest happenings in the global crypto scene. However, in doing so, the central bank is also calling up for stringent regulation on all the functionaries and systems affiliated with crypto.
Monetary Authority of Singapore (MAS) Managing Director Ravi Menon talked about crypto regulation at the Financial Times Global crypto summit yesterday. The central chief talked about the concerns in investing crypto assets for retail investors. Moreover, he pointed out that the wrong use of crypto can lead to money laundering and terror financing. Menon said:
“The licensing process is stringent. And it needs to be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities.”
Currently, the central bank of Singapore has approved only a fraction of the 170 digital asset applications. Moreover, over 100 companies have already failed to obtain a license for handling crypto operating in the country. This is due to the companies not able to meet the licensing requirements.
MAS Managing Director stated that the central bank took a “tough line” on retail crypto investing. According to him, the reason for this is that they are not sure whether retail investors using crypto is viable or not. At that time, he said,
“I think many global regulators share similar concerns about retail exposure to cryptocurrencies.”
The central bank boss also stated that the financial system is immune to any potential threats that crypto can give. However, there are risks from crypto such as money laundering and terror financing.