In a recent move, the Monetary Authority of Singapore (MAS) declared that none of the businesses have qualified as cryptocurrency payment providers under the FinTech Regulatory Sandbox framework. The MAS shared this information in response to a letter published in the Financial Times. The letter partly criticizes the Singaporean government’s approach towards cryptocurrency adoption, including its lack of appropriate public consultation.
This is not to say that Singapore is entirely dismissive of disruptive financial technologies. Indeed, MAS clarifies that the country supports a broad spectrum of FinTech experimentation. However, it seems to favor a more thorough and possibly cautious approach to incorporating different payments innovations.
In line with this stance, the MAS also argued that the observed increase in malware scam cases in Singapore is not attributed to cryptocurrencies. Rather, it indicates that such fraudulent activities are more prevalent in the former, traditional fiat economy. This stands as a crucial point of divergence against accusations thrown towards the digital currency sphere.
Notably, the MAS clarified that access to the FAST system – an electronic transfer system facilitating the easy movement and transfer of SGD funds – is not restricted. Businesses, including those dealing with crypto, can utilize the system as long as they maintain a valid bank account.
In efforts to protect its economy, MAS has shown a pro-active approach to ensuring crypto businesses operating within its jurisdiction demonstrate robust Anti-Money Laundering (AML) controls. By implementing the necessary licensing and regulation metrics from the end of this year onwards, their strategy clearly aims to bring the crypto market under a stricter legal purview.
The MAS also puts forth new regulatory measures to highlight the potential risks of cryptocurrencies for retail customers. However, critics have argued that these changes are a response to the local sentiment against cryptocurrencies, rather than driven by progressive thought. Yet, it is important to remember that a healthy dose of skepticism might not be a bad thing when dealing with still-evolving technologies. It may be equally fascinating and relevant to follow the lead of the future President, Tharman Shanmugaratnam, who has been quite vocal about his skeptical views on the volatility of digital assets.
Source: Cointelegraph
