Singapore’s senior minister and chairman of its central bank, the Monetary Authority of Singapore (MAS), said there should be just “one regulatory system” for both crypto and traditional finance. In addition, he emphasized that regulators should provide “super clarity about what is an unregulated market” so that investors recognize that they enter at their own risk.
one regulatory system”
Tharman Shanmugaratnam, Singapore’s senior minister and chairman of the country’s central bank, the Monetary Authority of Singapore (MAS), spoke about cryptocurrency regulation during a panel discussion with other regulators and bankers at the World Economic Forum last week.
Shanmugaratnam previously served as Singapore’s deputy prime minister and finance minister. He also currently serves as Coordinating Minister for Social Policy and Assistant to the Prime Minister on Economic Policy.
“Something is very clear, whether it is crypto or traditional finance, you need to regulate for things like money laundering. So it’s very clear,” he began.
“But beyond that,” the minister explained, “if we have to think about regulating crypto in the same way as banks, insurance companies, etc. – for prudential reasons or financial stability reasons – I think we have to step back and ask some basic philosophical questions.” Does that justify something that is purely speculative in nature and, in fact, a bit crazy?” He said, adding.
Or is it just to make it extremely clear what is an unregulated market and that you are on your own if you enter? I’m leaning a bit toward the latter view.
The MAS chairman made it clear that some segments of the crypto market need to be regulated, pointing to stablecoins as a potential area for oversight.
“But to start getting into the game of regulation, whether it’s ostrich eggs or crypto or whatever, it’s going to be a never-ending game and I don’t think that’s the right approach,” he opined.
While stressing the importance of “consumer education,” he noted. “But just be super clear – make it very clear that this is a risk you are taking at your own expense, and by the way, don’t take that risk because it would be stupid. I prefer that approach.”
Minister Shanmugaratnam elaborated further.” And if you want crypto or blockchain or any part of that ecosystem to do what traditional finance is doing, you apply the exact same regulations to it – capital, liquidity, reserve backing – the exact same regulations.” He concludes.
So people are very clear. There is one regulatory system for everything. And if you are outside the regulatory system, buyer beware.
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