MAS distances itself from unregulated crypto, can it continue to rule?
The Monetary Authority of Singapore (MAS) chairman said not all crypto activities are regulated in response to parliament, as the country has faced some high-value crypto collapses in recent months.
When asked by MP Yip Hon Weng about security measures for the sector, MAS Incharge Tharman Shanmugaratnam stated: “In Singapore, as in other jurisdictions, not all activities related to digital payment tokens (DPTs) – referred to as cryptocurrencies – are regulated.”
He further explained that while the Payment Services Act 2019 governs businesses offering crypto services without interested parties applying for a license from the regulator, MAS would not be aware of the number of parties interested in establishing crypto investment companies in Singapore.
The PS Act sets AML/CTF standards for crypto
Regarding the risk of money laundering and terrorist financing, the MAS chief said the PS Act allows for a “strict licensing process.” He said: “Many applicants have been rejected. Where MAS has reason to suspect that an applicant is involved in illegal activity, MAS will, in addition to rejecting the application, refer the matter to the police for investigation.”
Singapore has been considered a favorable crypto market in Asia and globally, arguably pulling back the krona to Dubai. Meanwhile, news of Terra’s collapse and founder Do Kwon’s subsequent departure from the country has thrust the state into the global regulatory arena. Previously, the watchdog reprimanded the defunct hedge fund Three Arrows Capital for publishing false and misleading information.
Many believe Singapore continues to be a leader
Despite being in the eye of the storm, Ripple’s Policy Director (APAC) Rahul Advani believes the nation-state is a front-runner. He said: “The industry is moving at breakneck speed. Many regulators are playing catch-up. Singapore is ahead of the curve and as a regulator is open to discussions with the industry. You can sit with the Monetary Authority of Singapore (MAS) and exchange views quite openly.”
That said, MAS has highlighted that it will find unlicensed businesses illegally offering DPT services in Singapore and place them on its Investor Alert List. Shanmugaratnam added: “MAS is also working closely with the police to combat cryptocurrency fraud. MAS and the police have issued public advisories warning consumers to protect themselves from fraudulent websites soliciting cryptocurrency investments.”
It appears that Singapore will continue to allow putting crypto businesses under strict regulatory oversight, while raising risk concerns for retail investors and discouraging firms from advertising for them. But how long can it maintain a good home for businesses looking to set up in Singapore?
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