The tide is turning: Singapore hardens stance on cryptocurrency

June 24, 2022 0 Comments

As many crypto tokens crashes, Singapore, the city-state previously known for its lenient regulations and relatively low taxes, will be taking a firm stance against bad behaviors in the market.

According to a Financial Times report, Sopnendu Mohanty, chief fintech officer of MAS(Monetary Authority of Singapore), said ”We have no tolerance for any market bad behaviour. If somebody has done a bad thing, we are brutal and unrelentingly hard.”

In the past, friendly environment has attracted many cryptocurrency businesses to set up shop in Singapore. In recent months, as MAS(Monetary Authority of Singapore) rolls out stricter measures, refraining crypto business from consumer-facing marketing, companies such as Bybit and Binance tiptoed around the country as they expand. 

Bybit has moved its headquarters from Singapore to Dubai in March this year. Binance shut down operations in the country in February this year, but “made a sizable investment into regulated exchange HGX”, acquiring 18% stake, according to Changpeng CZ Zhao, founder and CEO of Binance.

“We have been called out by many cryptocurrencies for not being friendly. My response has been: friendly for what? Friendly for a real economy or friendly for some unreal economy,” says Mohanty, per Financial Times.

The city-state is also in the process of developing a central bank digital currency. The fiscal digital currency has been explore by many other countries such as China, Cambodia, and Japan. In China, the Digital Yuan wallet has been downloaded by 261 million people, with 72% using it for e-commerce purchases and 67% using it for public services such as transportation. 

On June 22, the Mojaloop Foundation, an open-source tech platform in Singapore, has co-lauched a Center of Excellence in Singapore, to “identify ways CBDC technologies have the potential to make a wider spectrum of Mojaloop-enabled, inclusive push-payment capabilities”, and “advancing financial inclusion in emerging markets.”

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