- Singapore’s central bank will release plans next month to make the country a hub for bitcoin and other digital assets.
- Following the contagion outbreak, many businesses have been hiding behind Singapore’s regulatory barriers.
- The country seeks to protect consumers and investors by properly regulating these entities while encouraging businesses within the ecosystem.
The Monetary Authority of Singapore (MAS) will release plans next month detailing guidelines for the country of Singapore to become a hub for bitcoin and other cryptocurrencies, according to a Press release of the regulator.
As the country seeks friendly relations with those looking to operate in the larger cryptocurrency space and become a hub of digital assets, much of the post details the importance of setting higher expectations for entities intended to use Singapore as a shield against bad practices. In the middle of the contagion that has fueled bearish market trends in recent months, some of the companies that have imploded in the wake of falling asset prices have cited Singapore as their base of operations.
“In reality, these so-called ‘Singapore-based’ crypto companies have little to do with crypto-related regulations in Singapore,” said Ravi Menon, chief executive of MAS.
Essentially, some of the companies that claimed to comply with regulations in Singapore were not properly registered, did not follow MAS guidelines or proper licensing procedures, or had ceased management altogether under MAS oversight. before insolvency, according to the MAS. Companies named in the report were TerraForm Labs – which publicly allocated a massive amount of cash to bitcoin before to crash – and Three Arrows Capital, which more recently fell to market conditions.
Therefore, MAS seeks to both encourage business practices within its jurisdiction while pursuing consumer protection and market conditions. In a forward-looking statement, Menon provided a preview of what’s to come in the upcoming framework to be released at a Green Shoots seminar.
“We will explain our position on cryptocurrencies, stablecoins, blockchains, tokenization, smart contracts, digital assets, etc. – their risks and opportunities; gaps and potential,” continued Menon. “We will explain how our development and regulatory approaches will work in harmony to achieve Singapore’s vision as an innovative and responsible digital asset hub.”