S’pore shows crypto commitment by excluding the majority of license applicants – Wired PR Lifestyle Story

In a report on Monday (December 20), Nikkei Asia suggests Singapore “After all, it’s not so welcome for cryptography” because it makes it difficult for entrepreneurs to obtain a license to operate digital payment token services New scheme launched by the Singapore Monetary Authority (MAS) at the beginning of the year.

And there is, in fact, some evidence to support that angle.

Of the 176 applicants, 103 have been severely rejected by the MAS or have decided to withdraw their pending application. These include the world’s largest cryptocurrency exchange, Binance, which announced its exit from the licensing process. Ending the internalization of Singapore users last week (after this order to suspend operations Issued by MAS in September).

To date, only four companies have been licensed to operate digital payment token (DPT) services – DBS Vickers, Australian Independent Reserve, local fintech startup FOMO Pay, and the provider of cryptocurrency payments TripleA.

Meanwhile, Coinhako has received only one “Senior Approval” From MAS, and the company is working hard to meet the requirements of the MAS to receive a license from the Central Paying Agency to provide DPT services in Singapore.

At this rate, less than a dozen companies may be able to legally operate in the city-state when cryptographic services are completed by reviews.

Isn’t Singapore committed to crypto? Doesn’t he believe in innovation? Doesn’t it want cutting-edge startups as well as major and successful companies like Binance?

Conversely.

Less is more

It takes 20 years to build popularity, and five minutes to ruin it. If you think about it, you’re going to do things differently.

– Warren Buffett

Regulatory bodies not only protect consumers, they also exist in the country’s reputation, ensuring that harmful activities are not allowed on its borders. They are placed to gain the trust of both citizens and foreigners.

On the one hand, the role of MAS is to ensure that none of the shady practices that have made the world of cryptography famous in recent times happen in Singapore. The city is already having enough problems with fraud and fake millions of dollars of lost police and officials.

On the other hand, no one can see criminal activity as a place to radiate to other countries.

Failure to do so at a regulatory stage would harm thousands of consumers (reduce public confidence in the authorities), as well as the country itself, and Singapore has achieved a strong international position (albeit a small one) thanks to worldwide trust. built over many decades.

Secondly, the constant announcements about cryptocurrencies have encouraged many to dare without enough experience in technology. They may be on the wave of global demand for tokens, coins, and digital NFTs, but they may not be able to deliver on their promises.

The national regulatory body cannot put a seal of approval on these companies either, even if their intentions are good.

We don’t need 160 of them to shop here. Half of them can do it, but with very high standards, I think the result is better.

– Ravi Menon, Managing Director of MAS

Make Singapore a global cryptocurrency hub intends to be, companies registered in the city must provide quality services that set world standards that build faith in technology and its capabilities.

Selectivity in the licensing process is key to achieving this goal, and the fact that the authorities are so scrupulous shows the extent of their commitment to innovation.

No one needs to test hundreds of companies; we just need some very good ones.

This is especially important because cryptocurrencies suffer from a bad reputation due to scams, “carpet pull” scams that rob people of money, questionable transaction costs, poor customer care among giants like Coinbase and Binance and so on.

In order for DeFi services to ever become dominant, they need to present success stories that spark trust. Accepting a free one is the opposite of that goal, which means it would actually stop innovation rather than help.

The early one takes the worm

While the world is struggling to find the best way to approach cryptography, Singapore’s leapfrog can create universally accepted standards, once again increasing the role of the city-state in the world.

This is doubly important given the extent to which financial services play a role in the country’s economy. about 16% of its GDP, and assisting as a manufacturing and trading center.

Singapore cannot accept that it is not the first or first financial agent. He has to be the first in the market and he has to have the strength to say what new rules are when they are written.

Otherwise, it would be facing foreign competition, which – if blockchain technology is to be successful in the long run – would leave Singapore in a lower league, completely threatening its status as a financial hub.

The unpredictability of the innovation is often so significant and widespread that the latest leaders can soon be found at the bottom of the pile (with the advent of the Nokia mobile phone, the story of the graceful fall of the mobile phone is one of the most telling). examples).

Singapore cannot – and clearly does not – accept this risk. At the same time, it seeks to ensure that it is not only one of the first to use cryptography, but also one of the most successful.

Featured Image Credit: PYMNTS