Singapore’s new attitude on cryptocurrencies

October 3, 2022



Singapore’s new attitude toward cryptocurrencies

As recently as last year, Singapore was preparing to emerge as a significant cryptocurrency centre. However, in reaction to the market’s slump and liquidity issue, regulators are hardening their stance. Sopnendu Mohanty is the chief fintech officer at the Monetary Authority of Singapore (MAS), the country’s central bank, according to the Financial Times. In contrast to MAS director Ravi Menon from the previous year, Mohanty’s point of view in his statements is a little different. Menon thought the crypto economy, which Mohanty had called “unreal,” might raise the value and generate employment.

Several cryptocurrency exchanges, like Binance and Gemini, have turned to Singapore in recent years because of its pro-crypto policy. For these enterprises, perceived crypto-friendly legislation and cheap taxes were major draws. However, in recent months, MAS has released more stringent criteria with an emphasis on digital assets. For instance, in January 2022, MAS prohibited the operation of cryptocurrency ATMs as well as cryptocurrency-related ads in public places. Since then, the base of Binance and other cryptocurrency exchanges has changed according to Mohanty, ed. Singapore has implemented a “painfully long” and “very stringent due diligence process” for licencing crypto busineanty. The city-state has been cautious in awarding cryptocurrency licences, and on June 22, became the newest company to receive an in-principle licence. Singapore has issued a total of 14 licenses and in-principle approvals.

“I believe that the entire world is mired in private cash, which is the root of all of this market upheaval.” Added Mohanty. Mohanty is open to central bank digital currencies even though he does not think highly of digital assets (CBDCs). Within three years, he predicted, Singapore will be prepared to introduce its own CBDC.

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