There should be only one regulatory system, for both digital assets and traditional finance (TradFi). This was stated by the chairman of the MAS, Tharman Shanmugaratnam, according to Bitcoin.com.
Regulators should focus on anti-money-laundering questions applicable to both traditional and digital assets.
The head of the central bank asked whether formally applying this approach would legitimise cryptocurrency activity that is essentially purely speculative and actually somewhat crazy, he said.
“Will this legitimise something that is essentially purely speculative and, in fact, somewhat crazy?” — he said.
As an alternative, Shanmugaratnam proposed bringing absolute clarity to the definition of an unregulated market. In this case, investors would know they are taking on their own risk, he added. This scenario is more preferable for the official.
The head of the Singapore central bank stressed that some segments of the cryptocurrency market, such as stablecoins, require separate regulation.
“If blockchain companies intend to do something similar to TradFi, they should be subject to the same rules — capital, liquidity, reserve backing,” he explained.
Earlier, applying the rules applicable to the traditional financial sector to the digital industry as one of the scenarios proposed by BIS analysts.
As noted, the CFTC said there were “advanced discussions” among global regulators on developing global industry standards for crypto regulation.
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