Singapore's Central Bank: We Want to Become a Reliable Worldwide Cryptocurrency Gateway
The Monetary Authority of Singapore (MAS), the continent's central bank and the cryptocurrency economy's supervisor, has stated that its certification procedure for virtual currency service suppliers must be rigorous. "It has to be since we want to become an active and responsible cryptocurrency centre featuring talented midfielders, as well as with solid threat managerial skills," stated the governor of the central bank.
Managing Director of the Monetary Authority of Singapore (MAS) Ravi Menon spoke on crypto legislation just at the Financial Times Cryptocurrency and Virtual Wealth Conference on Wednesday.
According to the source, the central bank chief expressed worries to ordinary buyers about the hazards of speculating in virtual currency. Menon noted that cryptocurrency could have been used for money trafficking and terrorist activity bankrolling:
The certification procedure is rigorous. Because it must be if we wish to be an active and competent cryptocurrency cluster with talented players as well as excellent risk analysis capacities.
The Singaporean central bank has granted just a tiny percentage one of about 170 applications for virtual currencies. Over a hundred firms who sought licence a cryptocurrency company have also already refused to honour the regulatory standards.
According to the MAS general manager, the central bank has taken a "strong stance" on domestic cryptocurrency investment "but we're not convinced that's a smart idea for individual investors to be experimenting in cryptocurrencies." According to him, "many worldwide regulators share similar worries about retail vulnerability to currencies."
Menon explained that the MAS evaluates applications based on their past performance and if they have effective corporate governance frameworks in existence. Furthermore, "they must be aware of financial fraud and terrorism funding issues," he stated.
According to the central bank chief, while virtual currency does not now constitute a danger to the monetary sector, they do pose criminal activity and terror funding threats.
In January, the MAS released "Guidelines to Disincentivise Crypto Exchanges by the Common Person," claiming that "digital currencies are very dangerous and therefore not fit for the wider populace."
The bank also stated that cryptocurrency network operators have been extensively marketing their operations using ATMs in crowded locations, warning that this might encourage the public to trade "on instinct, despite completely understanding the accompanying dangers."