Singapore govt official on cryptocurrencies: “MAS cannot regulate all products that people put their money in”

Maria Nikolova

MAS explained that it does not regulate virtual currencies per se but, as most jurisdictions, it regulates the activities that surround them if those activities fall within MAS’s more general ambit as financial regulator.

Given the rising investor interest in cryptocurrencies and the growing concerns of many regulators, it was barely surprising that senior Singapore officials faced a number of questions related to this segment. In an official reply to a question on whether regulatory frameworks for crypto currencies are necessary in the future, Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister in charge of the Monetary Authority of Singapore (MAS), said that “MAS does not and cannot regulate all products that people put their money in thinking that they will appreciate in value”.

The official noted the recent advancement in technology and the emergence of new virtual means of payment, such as cryptocurrency, which is a form of digital token secured by cryptography. They are not legal tender. But some people put their trust in them and use them as a means of payment.

MAS has been monitoring the use of such virtual currencies, he said. Their use, he noted, is not prevalent in Singapore when compared to markets like Japan.

Alike most jurisdictions, MAS does not regulate such virtual currencies per se, the top government official explained. However, he stressed that the activities that surround them if those activities fall within MAS’s more general ambit as financial regulator, are regulated. One example is fund-raising. Virtual currencies can go beyond being a means of payment, and evolve into “second generation” tokens representing benefits such as ownership in assets, like a share or bond certificate. The sale of such “second generation” tokens to raise funds is commonly known as an initial coin offering or ICO.

As these are financial activities fall within MAS’ regulatory powers, in August this year, MAS clarified that if a token is structured in the form of securities, the ICO must comply with existing securities laws aimed at safeguarding investors’ interest. The requirements include having to register a prospectus and having intermediary or exchange operator licences. These intermediaries must also comply with existing rules on anti-money laundering and countering terrorism financing.

The regulator has not issued new legislation particularly for ICOs, the government official said. He added, however, that the authorities will continue to monitor the developments of such offers, and will consider more targeted legislation if needed.

Some consumers may be attracted to invest in virtual currencies and digital tokens due to their recent exponential rise in value, he said. He emphasized that the authorities recognised the significant risks of investing in virtual currencies and that MAS and the Commercial Affairs Department are working together to raise public awareness of potential scams.

Read this next

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

Digital Assets

Big Time Generates over $100M in Revenue since Preseason

Innovative game developer Big Time Studios announces that its highly anticipated free-to-play multiplayer action/MMO RPG Big Time, has generated $100M in revenue. According to the team, players transacted a total volume of over $230M, without selling a single token.

Digital Assets

Centralized exchanges are 10 times more popular than DEXs in Western Europe

Western European traders are found to prefer centralized exchanges over decentralized ones as CEX traffic outpaces DEXs by a factor of ten.

Market News

Stock Market Analysis: Is NVDA Losing Its Leadership?

Since the beginning of the week, the S&P 500 Index (US500) has seen a modest increase of about 0.58%, whereas NVDA’s share price has experienced a decline of approximately 3.8%. This recent divergence raises concerns among Nvidia stock investors — could it signify a loss of NVDA’s market leadership?

<