Singapore’s central bank to release Bitcoin, crypto regulation – Bitcoin Magazine
- Singapore’s central bank will release plans next month to turn the country into a hub for bitcoin and other digital assets.
- After the outbreak, many companies hid behind regulatory barriers in Singapore.
- The country seeks to protect consumers and investors by properly regulating these entities while encouraging businesses within the ecosystem.
The Monetary Authority of Singapore (MAS) will release plans next month with guidelines for the country of Singapore to become a hub for bitcoin and other cryptocurrencies, according to a press release from the regulator.
As the country seeks friendly relations with those seeking to operate in the larger cryptocurrency space and become a hub for digital assets, much of the release described the importance of placing stricter expectations on entities meant to use Singapore as a shield for bad practices. Amid the contagion that has fueled the market decline in recent months, some of the companies that imploded as a result of falling asset prices cited Singapore as their base of operations.
“In reality, these so-called ‘Singapore-based’ crypto firms have little to do with crypto-related regulation in Singapore,” said Ravi Menon, CEO of MAS.
Essentially, some of the companies claiming regulatory compliance in Singapore were either not properly registered, did not follow MAS guidelines or proper licensing procedures, or ceased management under MAS supervision altogether before insolvency, according to MAS. Companies cited in the report were TerraForm Labs – which publicly allocated a massive treasury amount to bitcoin before the crash – and Three Arrows Capital, which recently fell to market conditions.
Accordingly, the MAS appears to both encourage business practices within its jurisdiction while pursuing consumer protection and market conditions. In a forward-looking statement, Menon presented a view of what’s to come in the upcoming framework to be released at a Green Shoots seminar.
“We will explain our position on cryptocurrencies, stablecoins, blockchains, tokenization, smart contracts, digital assets, etc. – their risks and opportunities; shortcomings and potential, Menon continued. “We will set out how our development and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub.”
