Singapore Will Take Action Against Unacceptable Crypto Conduct
- Sopnendu Mohanty claimed in an interview with the newspaper to safeguard the whole economy that Singapore had implemented a “painfully long” and “very rigorous due diligence procedure” for licensing crypto firms.
- Mohanty’s remarks follow the disruption caused by the May collapse of the TerraUSD (UST) stablecoin, which caused the crypto markets to plunge.
The Monetary Authority of Singapore (MAS) will be taking a hard stand on bad cryptocurrency behavior, according to the central bank’s chief fintech officer. Speaking at a conference, MAS managing director Ravi Menon said that the regulator would be “brutal and unrelentingly hard” on bad actors in the space. This uncompromising stance is likely in response to recent crypto-related scams and frauds that have taken place in Singapore.
It is clear that MAS is not happy with how some cryptocurrency firms are operating in Singapore. The central bank’s tougher stance on bad behavior could help clean up the industry and make it more compliant with existing regulations. This would be good news for investors and consumers alike, as it would help create a more stable and safe environment for dealing with digital assets.
Speaking to the newspaper, Sopnendu Mohanty said that Singapore’s licensing process for crypto businesses is “painfully slow” and “extremely draconian.” He explained that these measures are in place to protect the wider economy.
Mohanty went on to say that Singapore is not the only country with stringent regulations surrounding cryptocurrencies. In fact, he believes that many countries are still trying to figure out how to deal with this new technology. However, he believes that Singapore is ahead of the curve regarding regulation.
Ultimately, Mohanty believes Singapore’s approach to regulating cryptocurrencies is right. By taking a cautious and measured approach, they are able to protect their economy while still allowing innovation to flourish.
However, despite the difficult process, several crypto firms have continued on their current trajectory. The nation has approved the cryptocurrency exchange Crypto.com and two other businesses in-principle licenses for digital token payments.