MAS Doesn't Trust Retail Crypto Investments, Pondering More Regulations
Singapore regulators say cryptocurrencies are problematic due to high market volatility, warn against retail investment in cryptocurrencies.
New
The Chief Executive of the Monetary Authority of Singapore (MAS), Ravi Menon, addressed the agency's mixed signals on crypto in the public sphere during a seminar on August 29.
The public has claimed that local regulators are spreading crypto-positive sentiment while simultaneously threatening other regulations. According to Menon's new statement, the observation is not entirely wrong. He says the agency needs to do "a better job of explaining" the situation.
Overall, MAS is pro-digital assets, as Menon directly stated, “yes to digital asset innovation, no to cryptocurrency speculation.” Regulators want the island nation to become a hub for fintech innovation and distributed ledger business.
Although, according to recent statements, the problem lies with the cryptocurrencies themselves.
This is where MAS' "long and rigorous licensing process" for cryptographic services comes into play, Menon explains. This is also the reason for warnings against retail cryptocurrency investments and restrictions on retail cryptocurrencies.
“Cryptocurrencies have taken on a life of their own outside of the distributed ledger – and that is the source of the problems in the crypto world.”
Regulators cite the extreme volatility of the crypto market, which excludes them from being considered a viable currency or investment asset. MAS asserts that the price of said currencies is not correlated to "the underlying economic value related to their use in the distributed ledger".
Related:
Singapore regulators say cryptocurrencies are problematic due to high market volatility, warn against retail investment in cryptocurrencies.
New
The Chief Executive of the Monetary Authority of Singapore (MAS), Ravi Menon, addressed the agency's mixed signals on crypto in the public sphere during a seminar on August 29.
The public has claimed that local regulators are spreading crypto-positive sentiment while simultaneously threatening other regulations. According to Menon's new statement, the observation is not entirely wrong. He says the agency needs to do "a better job of explaining" the situation.
Overall, MAS is pro-digital assets, as Menon directly stated, “yes to digital asset innovation, no to cryptocurrency speculation.” Regulators want the island nation to become a hub for fintech innovation and distributed ledger business.
Although, according to recent statements, the problem lies with the cryptocurrencies themselves.
This is where MAS' "long and rigorous licensing process" for cryptographic services comes into play, Menon explains. This is also the reason for warnings against retail cryptocurrency investments and restrictions on retail cryptocurrencies.
“Cryptocurrencies have taken on a life of their own outside of the distributed ledger – and that is the source of the problems in the crypto world.”
Regulators cite the extreme volatility of the crypto market, which excludes them from being considered a viable currency or investment asset. MAS asserts that the price of said currencies is not correlated to "the underlying economic value related to their use in the distributed ledger".
Related:
What's Your Reaction?
