Singapore’s chief minister and central bank chairman, the Monetary Authority of Singapore (MAS), says there should be only “a regulatory system” for both crypto and traditional finance. In addition, he stressed that regulators must provide “ultra-clarity as to what an unregulated market is” so that investors are aware that they are entering at their own risk.
‘A regulatory system’
Tharman Shanmugaratnam, Chief Minister of Singapore who is also Chairman of the country’s central bank, the Monetary Authority of Singapore (MAS), spoke about cryptocurrency regulation during a Discussion panel with other regulators and bankers at the World Economic Forum last week.
Shanmugaratnam previously served as Singapore’s deputy prime minister and finance minister. He is currently also the coordinating minister for social policies and adviser to the prime minister on economic policies.
“One thing is very clear, whether it is crypto or traditional finance, you have to regulate things like money laundering. So that’s very clear,” she began.
“But beyond that, if you have to think about regulating cryptocurrencies in the same way that we regulate banks, insurance companies, etc., for prudential reasons, for financial stability reasons, I think we need to take a step back. and ask the basic philosophical question”, explained the minister. “Does that legitimize something that is inherently purely speculative and, in fact, a little crazy?” he said he, adding:
Or is it better that we just provide extreme clarity on what an unregulated market is and if you enter, you do so at your own risk? I lean a little more towards the latter opinion.
The MAS president went on to clarify that some segments of the crypto market should be regulated, pointing to stablecoins as a possible area of supervision.
“But starting to get into a regulation game, whether it’s ostrich eggs or cryptocurrency or anything else, it’s going to be a never-ending game and I’m not sure it’s the right path,” he opined.
While he stressed that “consumer education” is important, he noted: “But it’s also very clear: make it very clear that this is a risk you’re taking on, and by the way, don’t take that risk because you’re going to be silly. I’d rather that approach”.
Minister Shanmugaratnam further detailed: “And then if crypto or blockchain or any part of that ecosystem wanted to do things that traditional finance is doing, the exact same regulations apply to that: capital, liquidity, backing. reserve, exactly the same. regulations.” He concluded:
So people are very clear. There is a regulatory system for everything. And if you’re outside the regulatory system, buyer beware.
What do you think of the statements by the Chief Minister of Singapore, Tharman Shanmugaratnam? Let us know in the comments section.
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