[ad_1]
Singapore can become a leader in the cryptocurrency world economy.
“If a crypto-economy is to emerge in any way, we want to be one of the main players,” Ravi Menon, managing director of the Singapore Monetary Authority (MAS), told Bloomberg.com in a preview. at next week’s FinTech festival in Singapore.
“It can help create jobs, create added value, and I believe that more than the financial sector, other sectors of the economy will potentially benefit,” Menon said.
According to Mr. Menon, the only way forward is through careful investment in the world of cryptocurrency. “We think the best approach is not to reduce or ban these things,” he said.
This statement is another endorsement of digital currency in the Republic. Last week, Chief Minister Tharman Shanmugaratnam, President of MAS, spoke about the future and functionality of Singapore’s cryptocurrency.
Singapore’s role in crypto
Like Mr. Tharman, Mr. Menon sees the benefits of building a vibrant and well-regulated cryptographic site that can be extended beyond Singapore’s financial sector.
“With crypto-based activities, it’s basically a future investment, and the shape of which isn’t clear at the moment,” Menon said.
Singapore is attracting large crypto companies like Binance Holdings and Gemini, even though some companies are dealing with regulators around the world.
The space for cryptocurrencies in Singapore is growing, as seen by 170 companies applying for a MAS license, which has brought the number of companies operating under its Payment Services Act to around 400 since the law came into force in January last year. .
The Payment Services Act is the city’s way of formalizing cryptocurrency payment services. Thus, the Singapore government gives it greater oversight and control over its activities.
As a licensed entity, customers ensure that the central bank has jurisdiction over the operations of companies in order to provide better protection for users. It is likely that the central bank will be responsible for any business if it does not meet regulatory standards.
Strict requirements of the MAS
However, Singapore is taking a careful and calculated approach to crypto companies.
Today, only three crypto companies have received the much-desired licenses, and two were rejected.
About 30 withdrew the application after contacting the regulator. Among those admitted is the area of mediation DBS Group Holdings, The largest bank in Singapore, is also a pioneer in establishing a digital token trading platform while providing tokenization services.
Like Mr. Tharman, Mr. Menon mentions that one of the main concerns of cryptocurrency is its security risks and potential for “illegal flows”.
“But not getting into this game, I think, is in danger of falling behind Singapore. Getting into that game early means we can move forward and better understand its potential benefits and risks, ”Menon said.
As such, Singapore is “interested in developing crypto technology, blockchain, understanding smart contracts and preparing for a Web 3.0 world,” he said, referring to the third generation of online services.
The future of crypto companies in Singapore
Strict regulatory requirements are needed to build a better cryptographic site in Singapore.
MAS has also increased resources to deal with large volumes of prospective service operators.
Singapore remains on the list of countries or cities that adopt cryptocurrencies. Efforts are also being made in a variety of locations such as Dubai, Miami, El Salvador, Malta and Zug (Switzerland).
“We don’t need 160 to put the store here. Half of them can do it, but with very high standards, I think that’s a better result, ”he said.
Get $ 20 discount your request VP Label When you pay with peace and code PACEVP20 (spent at least $ 80). Discover and buy exciting home brands now:
Featured Image Credit: Getty Images
[ad_2]
Source link
