Singapore’s approach to cryptocurrency control, sector outlook ‘not contradictory’, regulator says
- Monetary Authority of Singapore managing director Ravi Menon says strategies are aimed at promoting innovative and responsible digital asset activities
- Central bank considers tougher rules to deter investment in ‘highly hazardous’ cryptocurrencies, but also aims to grow digital asset ecosystem
Instead, Monetary Authority of Singapore (MAS) managing director Ravi Menon said the city state promoted innovative and responsible digital asset activities and its strategies were aimed towards that goal.
“Innovation and regulation are not incapable of coexisting. We do not split the difference by being less stringent in our regulation or being less facilitative of innovation,” Menon said in a speech at a fintech conference.
Menon on Monday made clear the activities that the central bank was encouraging and those that it opposed.
On one hand, there were cryptocurrencies that were “highly hazardous” for retail investors, and their price volatility had made them an unviable form of investment asset. They were also “heavily speculated upon”, which was what the MAS strongly discouraged and sought to restrict, he said.
While Singapore authorities do not ban retail access to cryptocurrency, they have long discouraged the public from investing in it. Earlier this year, Singapore also moved to ban the promotion of cryptocurrency activities at public services, which saw the removal of advertisements at areas including train stations.
Despite the measures, people remained undeterred. “Many consumers are still enticed by the prospect of sharp price increases in cryptocurrencies. They seem to be irrationally oblivious about the risks of cryptocurrency trading,” Menon said.
The central bank was considering further measures, including customer suitability tests, he added. “Adding friction on retail access to cryptocurrencies is an area we are contemplating.”