Singapore regulators crack down on cryptocurrencies

Singapore’s financial regulator and central bank have pledged to take “ruthless and tireless efforts” against any “bad behavior” in the cryptocurrency industry.

These comments come from Sopnendu Mohanty, Chief Fintech Officer at the Monetary Authority of Singapore (MAS), who interview “If someone does something bad, we’re ruthless.”

He also hit back at certain crypto market participants who criticized regulators for not being crypto friendly enough and instead questioned the legitimacy of the market, saying:

“We were called unfriendly by many cryptocurrencies, and my response was: friendly for what? Friendly to the real economy or friendly to some non-real economy?”

The fintech chief believes that the world is “lost in private money” broader market turmoilMohanty added that in response to the regulator’s conservative stance on cryptocurrencies, the city-state instituted an “extremely draconian” and “extremely slow” due diligence process to license cryptocurrency businesses.

Singapore import license For crypto companies in January 2020, and the requirements for which companies are licensed are very strict. Cointelegraph reported in December 2022 that MAS Strike back approval for over 100 licenses from a company that has applied.

Cryptocurrency providers in January are Ban the promotion of their services in public places Examples include the expansion of public transport to public websites as well as print, broadcast and social media.

MAS also expanded its ability to regulate crypto businesses in April Regulators pass new requirements If a company wants to provide services abroad, it must obtain a license and comply with anti-money laundering and combating the financing of terrorism requirements.

related: Singapore explores the tokenization of public chain digital assets

Due to low taxes and the perception that Singapore is A more cryptocurrency-friendly one But the tightening of regulation shows that as the country Focus on its central bank digital currency (CBDC).

On June 21, payment system provider Mojaloop Foundation Open Singapore’s CBDC Centre of Excellence (COE), sees MAS as a member of its working group and Mohanty as an advisor to the board.

With the opening of the COE, Mohanty believes state-backed alternative cryptocurrencies could be launched within three years.

The COE aims to reduce the costs and inefficiencies of payment platforms and cross-border payments, which Mohanty said he welcomed as a “step into the future of financial services”.