Think that the country of Singapore will ever regulate cryptocurrencies, you will want to think again because the Monetary Authority of Singapore has no plans of regulating it yet. The Monetary Authority of Singapore (MAS) is Singapore's central bank and financial regulatory authority, which administers the various statutes pertaining to money, banking, insurance, securities, and financial sector.
The current MAS Managing Director, Ravi Menon, revealed regarding cryptocurrencies and what regulations should be implemented that will be suitable. The Managing Director also thinks that cryptocurrencies will actually benefit more people, and will like the central bank and scholars to focus more on Blockchain, especially, cryptocurrencies. So, while the country of Singapore is not yet ready to regulate it, the MAS believes that it will certainly benefit the people who are living in Singapore. Several ways that cryptocurrencies will benefit, the possibilities are making cross-border inter-banking payments inexpensive, faster, and more efficient.
Blockchain – What's in Store?
There are lots of potential for Blockchain in Singapore. This said, let's explain what Blockchain is. Blockchain is a continuously growing list of records, called blocks, linked and secured using cryptography.. Now, blockchain is always an advocate in Singapore, and the reason is because Singapore and Hong Kong announced a corporation on October 25th. Through this corporation, the Blockchain technology links the country's trade finance platforms, strengthening and fostering FinTech development within the region. This agreement, both MAS and HKMA have committed to working on a strategic project on trade finance cross-border infrastructure, which is based on distributed ledger technology. So, this corporation is truly bringing financial innovation in Singapore and Hong Kong.
MAS is keeping an “open mind” when it comes to Singapore having a development when it comes to blockchain technology. Truly, potential is seen within the country of being the hub in the coming years.
Summing it All Up
So, explaining why the country of Singapore is not yet ready to regulate cryptocurrencies, such as bitcoin, it is because it remains alert when it comes to money laundering and other potential risks when it comes to utilizing electronic currency to transfer money. With the high risk of security and data breach, making sure that banks and businesses will not get impacted is on the minds of the country's central bank. Previous mentioned regarding MAS Managing Director Ravi Menon, about not yet regulating, Ravi is looking closely on activities surrounding cryptocurrency and the risks that they pose, requiring regulatory responses.
Truly, when it comes to money, making sure that it is safe and regulated is important. The reason is because it is your safety net, and we need money constantly. Serious threats are everywhere, and central banks and government needs to implement laws in order to make sure any sort of money, rather it be paper or electronic, be protected. While the bitcoin rally is certainly attracting countries, regulating is certainly one that needs to be considered. Several countries has not yet regulated cryptocurrencies, which Singapore is not the only country. China and South Korea has banned initial coin offerings, while Russia has called for a regulation of the sector. While no regulation is currently established, a system such as virtual-currency intermediaries and exchange operators is implemented in order to prevent money laundering and terrorism financing.
Cryptocurrencies Currently Trading
Cryptocurrencies is definitely on the rise, just making sure that measures and security are implemented is what government and central banks in many countries needs to think about. Currently, there are more than 1,100 cryptocurrencies trading in the financial market, and the price ranges between approximately a quarter to thousands of dollars. So, you can see the reason why there needs to be some sort of regulation. Protection of electronic currency needs to be implemented, and the country of Singapore aims to be the first country regulating cryptocurrencies, even though many countries are trying to efficiently regulate it.