The MAS has only authorized the use of digital payment tokens for 11 companies.
He cited the demise of the cryptocurrency Terra (LUNA).
This week’s ATxSG event in Singapore saw Singapore’s Deputy Prime Minister Heng Swee Keat caution regular investors against investing in cryptocurrency. The Deputy PM said, “Retail investors, especially, should steer clear of cryptocurrencies. We cannot express this enough.”
Potential to Revolutionize Finance
To further his case, he cited the demise of the cryptocurrency Terra (LUNA) and the algorithmic stablecoin Terrausd (UST). Investors in both cryptocurrencies lost a significant amount of money when they fell. Despite the deputy prime minister’s warnings that crypto is “highly risky,” he believes that digital dollars have the potential to revolutionize finance.
Keat emphasized the importance of crypto regulation, stating:
“We must continue to adapt our rules to ensure that regulation remains facilitative of innovation, and yet addresses the key risks that crypto assets pose.”
The Monetary Authority of Singapore (MAS), the country’s central bank, is the primary supervisor of the crypto industry in Singapore. Many individuals have sought a license with the MAS to operate a crypto exchange. However, roughly 100 firms have already failed to fulfill regulator standards. Since its inception, the MAS has only authorized the use of digital payment tokens for 11 companies.
In April, the central bank said that the licensing procedure for digital asset service providers should be more rigorous. According to the MAS, a responsible global crypto center with innovative players and solid risk management skills necessitates this. Following the MAS statement in January, all of the country’s crypto ATMs were forced to shut down. According to a statement issued by the central bank earlier this year, crypto trading is not for the general public and should not be advertised.