Ravi Menon says Singapore will not regulate cryptocurrencies

The chief of the Monetary Authority of Singapore (MAS), Ravi Menon, said in an official interview on Tuesday that Singapore has no plan to control cryptocurrencies such as Bitcoin.

However, he explained that he will prudently look in the money laundering and other potential risks causing from their use.

Menon quoted saying:

“As of now I see no basis for wanting to regulate cryptocurrencies”.

Rather, the bank will target on viewing at “the activities surrounding the cryptocurrency environment and asking ourselves what kinds of risk they pose, which risks would require a regulatory response, and then proceed from there,” Menon listed

Answering to a parliamentary question on cryptocurrency regulation, he noted, “We control the activities that surround them [cryptocurrencies], if those activities fall within our more general ambit as financial regulator.”

Singapore’s Approach to Crypto Regulation

Menon also expressed that Singapore is in need of digital currency intermediaries such as Bitcoin exchange operators. Since to comply with requirements to fight with money laundering and terrorism financing.

Many different interviews with Bloomberg television, Menon said,

“Very few jurisdictions regulate cryptocurrencies per se. Most have taken the approach that the currency itself does not pose the risk that warrants regulation.”

Recent days, some of the banks in the country have desisted with processing business with several cryptocurrency startups.

Also Read: Singapore adds Accenture for blockchain prototype interbank payments

As per the list of local Cryptocurrency and Blockchain Industry Association, more than 10 companies have severe problems with local banks, which provide no description for the shutdown of the accounts.

Law for ICOs in Singapore

Menon explains,

“If ICOs include the promise of a dividend or other economic benefits, they can resemble regular securities offerings and would, therefore, be covered by Singapore’s Securities and Futures Act [SFA],”

The statement is restate issued by MAS in August on ICOs, listing that:

“MAS’ position of not regulating virtual currencies is similar to that of most jurisdictions. However, MAS has observed that the function of digital tokens has evolved beyond just being a virtual currency”.

Furthermore, the central bank described that digital tokens “may represent a security interest over an issuer’s assets or property”. However, it can make them under SFA to offer shares or units in a combines investment scheme.

In conclusion, MAS says, they will just look closer them in all the cases to bring into regulatory ambit. Henceforth, which ones can stay out of the line.

Read Next: 3 new blockchain payments prototypes: Singapore’s de facto central bank

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Sara K

Sara is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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