The Monetary Authority of Singapore (MAS) intends to foster a vibrant digital assets ecosystem, while curbing ‘speculative trading of cryptocurrencies,’ MAS managing director Ravi Menon said.
At the Green Shoots Seminar this morning, MAS MD Ravi Menon, explained the complexities of the #digitalasset ecosystem and its different components, & what MAS is actively promoting and discouraging; and what are the risks MAS is seeking to manage. https://t.co/6LkxiaFpZr
— MAS (@MAS_sg) August 29, 2022
\”Cryptocurrencies have taken on a life of their own outside the distributed ledger—and that is a source of problems for the industry. … Speculation in cryptocurrencies is not something MAS approves of and seeks to limit,\” Menon said at the Green Shoots seminar.\
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According to him, the regulator’s aim is to create an innovative and responsible digital assets ecosystem in Singapore. The official added that the authority regards cryptocurrencies as ‘unsuitable for use as money and highly dangerous for retail investors’.
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\”MAS sees good potential in stablecoins provided they are backed by high-quality reserves and well regulated,\” added Menon.
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The regulator also views wholesale CBDC, \”especially for cross-border payments and settlements.\” He added that he has not heard compelling arguments in favour of the central bank’s retail digital currencies in Singapore.
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\”I hope this presentation has shown clearly that MAS’s pro-activity in digital-asset operations and its restrictive stance on cryptocurrency speculation do not contradict each other. In fact, it is a synergistic and holistic approach to developing Singapore as an innovative and responsible global centre for digital assets,\” concluded Menon.
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In July, the regulator announced tougher regulation of cryptocurrencies to curb investor risk. Prior to that, authorities promised to fight violations in the sector ‘cruelly and relentlessly’.
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As reported in August, Bloomberg sources said that MAS sent inquiries to cryptocurrency firms about their activities and assets.
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