Why Is Singapore Changing Policy Regarding Cryptocurrencies?

Why Is Singapore Changing Policy Regarding Cryptocurrencies?

The city-state may no longer be one of the world’s most crypto-friendly nations due to the chief fintech officer of the regulator’s comments.

The central bank and financial watchdog of Singapore have vowed to crack down brutally and unrelentingly hard on any bad conduct from the cryptocurrency sector. Sopnendu Mohanty, the chief fintech officer of the Monetary Authority of Singapore (MAS), said that if anybody has done a negative thing, we are merciless and unrelentingly severe. Additionally, he responded to claims made by certain players in the cryptocurrency market that the regulator was not supportive enough of cryptocurrencies and instead cast doubt on the industry’s viability, saying that many cryptocurrencies have criticized us for not being nice. His reaction has been: Friendly for what? Which is more beneficial: a genuine economy or an imaginary one?

New Era for Cryptos in Singapore

The head of the fintech thinks the larger financial upheaval comes from a world lost in private cash. According to Mohanty, according to the regulator’s cautious attitude toward cryptocurrencies, the city-state instituted an incredibly strict and painfully delayed due diligence procedure for licensing crypto firms.

Singapore began licensing cryptocurrency businesses in January 2020 and has strict criteria for approving organizations for a license. The MAS reportedly rejected over 100 licensing requests from firms in December 2022. In January, bitcoin service providers weren’t able to market their products in public spaces; there included public transit, public websites, print, broadcast, and social media.

The Malaysian Anti-Money Laundering and Combating the Financing of Terrorism Agency (MAS) is expanding its ability to police cryptocurrency businesses as well. In April, the regulator passed new rules requiring businesses to obtain licenses and be subject to AML/CFT regulations if they wanted to offer services outside of Malaysia. Due to Singapore’s low taxation and reputation as one of the most crypto-friendly city-states, several cryptocurrencies were established there. However, regulatory tightening shows that it is changing as the nation concentrates on its Central Bank Digital Currency (CBDC).