Singapore’s contribution in terms of adoption technological advancement and digitalization is already top-notch and unparalleled. However, it is dire wish of the sovereign state-cum-city that it transforms into the epicenter for digital transformation by becoming not regional but global crypto hub.
Steps in the direction of complete digital transformation have been taken by Singapore’s authorities. Absolutely, the sovereign state, which was once part of Malaysia, has a wish of becoming leader in the digital asset sector. The state has become optimistic that it can play a vital role for the global villagers with regard to crypto business. Aim of Singapore is therefore to become a global crypto hub, as explained by an official of Monetary Authority of Singapore (MAS).
Singapore is currently, like the rest of the world, is looking at the possibility wherein it can regulate internal digital industry. This was so apprised by Ravi Menon, who is the MD of MAS. Menon opined that the best way to move forward is try not to be very harsh on virtual assets. They need not to be clamped down nor should they be banned temporarily or permanently.
MAS is like a central bank which generally exists in every country like Central Bank of Nigeria or The Bank of England. Similarly, MAS is the central bank wielding supervisory powers bank upon entire banking sector of Singapore. It also looks at the affairs of virtual assets service providers, also usually known as “VASPs”. Since MAS also acts as a banking sector policy maker, therefore, the job of preparing crypto regulation is that of MAS.
Although, MAS didn’t go hard at VASPs while preparing the crypto regulation, yet it has somewhat applied a relatively strong stance towards VASPs now. For instance, it was reported a month ago that MAS is in favor of strict regulations. It said that it does not wish to leave any loopholes which can they be exposed by anyone for gaining any advantage. Therefore, it is necessary that certain requirements should be set up which would be followed by VASPs in the first place. Similarly, there are known and unknown risks with crypto which have to be ascertained before anyone is allowed to resume crypto business.
Menon explained that though crypto provides an investment vehicle, therefore, the structure of the vehicle has to be crystal clear. He also suggested that while regulations are must yet Singapore would need to make sure that it keeps up with the global pace. Singapore cannot afford to lag behind otherwise entire efforts put in for converting Singapore into a “crypto hub” will be washed away. He insisted that Singapore has to act as soon as possible so that it can earn a head start. Secondly, the country needs to determine the benefits of crypto along with its dangers.