Cryptocurrency Has No Risk Concerns – Singapore Deputy PM
Tharman Shanmugaratnam, the Singapore’s deputy prime minister, provided new commentary on the government’s commitment “not to ban” any cryptocurrency as part of its future regulatory plans.
In a series of fourteen (14) statements published Monday, February 5, 2018, in response to questions posed by members of parliament on Tuesday, Tharman Shanmugaratnam, deputy prime minister and minister in charge of regulatory body the Monetary Authority of Singapore (MAS), confirmed a broadly hands-off policy concerning cryptocurrencies going forward.
“MAS has been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here,” the Deputy Prime Minister explained.
“But we will be subjecting those involved as intermediaries to our anti-money laundering regulations. And we will keep highlighting to Singaporeans that they could lose their shirts when they invest money in cryptocurrencies.”
Just like Japan, Singapore has brought out itself as a liberal environment for both cryptocurrency and Blockchain innovation over the past few years.
Exactly opposite of China and Indonesia, the city-state has favoured Blockchain in particular as part of its bid to become a global hub for the technology.
Addressing the great difference between Singapore and its neighbours, Shanmugaratnam noted that volumes involved were comparatively small and exposure to the financial system correspondingly of little importance.
“For now, the nature and scale of cryptocurrency trading in Singapore do not pose risks to the safety and integrity of our financial system,” he continued.
“Further, connections between cryptocurrency trading and Singapore’s financial system are also not significant at present. Singapore’s banking system does not have any significant exposure to global and local entities dealing in cryptocurrencies. We hence do not have broader, systemic risk concerns with regard to cryptocurrencies.”
In January 2018, MAS managing director Ravi Menon sounded similarly bullish on cryptocurrency’s future when he went on record to mainstream media to state that he hoped assets and their underlying technology would survive a major crash.