Singapore’s recent presidential elections have thrust the future of blockchain and cryptocurrency regulation into uncertainty. Tharman Shanmugaratnam, formerly the chair of the Monetary Authority of Singapore (MAS), earned a commanding victory, securing the presidency with more than 70% of the vote. Known for his conservative approach to cryptocurrencies, Shanmugaratnam’s election raises questions around the direction Singapore might take concerning digital assets and blockchain technology.
During his time at MAS, Shanmugaratnam oversaw the fall of Three Arrows Capital and Terraform Labs during the 2022 market crash. He has previously voiced concerns about the volatility and risk attached to cryptocurrencies, branding them as “highly risky” investment products. Despite these views, the MAS, under Shanmugaratnam’s leadership, did issue in-principle approval for Crypto.com to operate in the country, with exemptions also provided for Bitstamp, Coinbase, and Gemini Trust.
There might be some cause for concern for crypto enthusiasts given Shanmugaratnam’s cautious stance on digital currencies. However, it’s important to note that the role of president in Singapore is primarily ceremonial. It’s yet to be seen whether his presidency will evoke any significant shifts in the city-state’s crypto policy.
Since Shanmugaratnam’s departure from MAS, the financial regulator has initiated a review of its stablecoin regulatory framework. This is part of a broader public consultation launched in 2022 to assess and improve cryptocurrency practices.
The uncertainty surrounding the future of blockchain regulation in Singapore mirrors global skepticism and diversity of opinion towards cryptocurrency. Worldwide, countries are grappling with striking the right balance between innovation and risk, with digital asset policies ranging from permissive to restrictive.
Singapore stands out for its relatively open approach, highlighted by a significant court ruling in July that saw cryptocurrencies being classified as personal property, paralleling fiat money. As the country ushers in a new political era under President Shanmugaratnam, the crypto community will be keeping a close watch on Singapore’s regulatory compass and its future impact on blockchain development.
Source: Cointelegraph
