cryptonews.net
The Monetary Authority of Singapore is considering implementing "client appropriateness checks" to prevent cryptocurrency trading. Managing Director of the Monetary Authority of Singapore (MAS) Ravi Menon said at a event headlined "Yes to digital asset innovation, No to cryptocurrency speculation." Although Menon acknowledged that the MAS has shown interest in luring cryptocurrency firms, he noted that the MAS's licensing procedure is time-consuming. For this reason, it is implementing stringent regulations to limit cryptocurrency investments by the general public.
According to Menon, many individuals are "irrationally ignorant" of the dangers of trading cryptocurrencies. Bitcoin ATMs were removed from circulation, and ads for cryptocurrency services vanished from MRT stations after the government clamped down on the marketing of digital assets in January.
The MAS was considering "adding frictions" to the retail use of cryptocurrency, he added.
"These may include client eligibility assessments and banning the use of leverage and system of banking for crypto exchanges."
Crypto regulations in Singapore
Bloomberg reported on Friday that the Monetary Authority of Singapore (MAS) has handed out lengthy questionnaires to a subset of Digital Payment Token license applicants and current holders. The questionnaires, which were sent over the last month, allegedly sought "very detailed information" from the under review crypto businesses on their operations and assets.
It is also worth mentioning that one of the reasons why Singapore decided to tighten the crypto trading rules is because a big number of traders started to use automated software like the bit code method, which allows investors to get benefits with the help of AI and algorithms. As a result of this, investors are able to automate processes and make money even when they aren’t at the screens. The automated software can be used by both novice and experienced crypto investors. Companies' financial viability and network connectivity were investigated by querying their token ownership, lending and borrowing counterparties, loan amounts, and token staking practices by decentralized finance protocols.
Digital asset providers established in Singapore but conducting business outside of the country must obtain a business license and comply with local Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements under the country's new crypto legislation, the Financial Services and Markets Bill.
In terms of crypto legislation, Singapore is much ahead of the curve. Companies interested in doing business in Singapore, and anybody interested in the global regulatory landscape for digital assets more generally, would do well to familiarize themselves with Singapore's regulatory environment.
In contrast to its neighbors, who have outright banned the digital payments industry, Singapore's legal and regulatory frameworks show a proactive desire to adapt to the crypto environment. China, Indonesia, and most recently Thailand have all decided to outright ban bitcoin trade.
Singapore has taken a careful approach, nevertheless. It should also be stated that the Monetary Authority of Singapore (MAS) released recommendations in January stating that businesses offering crypto services should not advertise to the general public in Singapore. The MAS has been so cautious that it has turned down over a hundred cryptocurrency companies that wanted to set up shops in the country.
Crypto in other Asian countries
There is a lack of consistency in the regulation of cryptocurrencies among Asian nations. The regulatory structure is inconsistent and disjointed. Although cash remittances account for more than 9% of GDP in the Philippines, bitcoin wallets are quickly becoming the preferred vehicle for such transactions. Five point two percent more money was sent back home in the first eleven months of 2021 than in the same period the previous year, for a total of $28.4 billion. If a country, like the Philippines, has a large unbanked population but widespread access to cellphones and the internet, then sending remittances in cryptocurrency may be done at a low cost.
As a means of circumventing Western sanctions and continuing to finance its nuclear missile development, North Korea has turned to cryptocurrency. Nonetheless, their retail and institutional investor regulatory structure is poorly communicated to the rest of the globe.
While the shadow government of Myanmar has accepted Tether (USDT) as legal cash, Bhutan has worked with Ripple (XRP) to build its central bank digital currency (CBDC).