Singapore’s central bank will strengthen regulations governing cryptocurrency, potentially widening them to cover consumer protection and currency reserves for stablecoins, among other things.
Ravi Menon, managing director of the Monetary Authority Singapore (MAS), points out that the global crypto industry is still evolving and that regulations are still catching up with the trends.
Although Singapore has a clear licensing and regulatory framework for the crypto industry, he acknowledged it has thus far been focused on containing money laundering and terrorist financing risks, similar to most other jurisdictions.
“Most regulatory regimes today do not cover areas such as consumer protection, market conduct, and reserve backing for stablecoins. This is changing. Reviews and public consultations are underway, among international standard-setting bodies and regulators, to strengthen regulation in these areas,” he says in a statement on July 19.
He says the central bank will hold consultations on its proposed measures “in the next few months”, and that in August, MAS will unveil strategies to develop Singapore as a digital asset hub.
“We will explain our position on cryptocurrencies, stablecoins, blockchains… We will set out how our developmental and regulatory approaches will work in harmony to achieve the vision of Singapore as an innovative and responsible digital asset hub,” Menon says.