Singapore Will not Ban Cryptocurrencies, says Deputy PM

Singapore Will not Ban Cryptocurrencies, according to the latest commentary of Tharman Shanmugaratnan, the deputy prime minister and minister in charge of regulatory body the Monetary Authority of Singapore (MAS).

7 February, AtoZForex – Tharman Shanmugaratnam, the deputy prime minister of Singapore, has reiterated government’s commitment “not to ban” cryptocurrencies as part of its regulatory plans for the future.

Singapore Will not Ban Cryptocurrencies, says Deputy PM

Yesterday, the Singapore officials have released fourteen statements as a response to the questions from the members of Parliament. Tharman Shanmugaratnam is deputy prime minister and minister in charge of regulatory body the Monetary Authority of Singapore (MAS). He has confirmed that Singapore will continue to carry on with its hands-off policy in regards to cryptocurrency market.

He has stated:

“…(MAS as been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here.

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.”

Singapore and Japan Are Bullish on Crypto

Similar to Japanese approach, Singapore has announced a permissive environment for both Blockchain and cryptocurrency innovations in the country. The country has been following this trend for the past few years.

Japan and Singapore differ a lot in their position regarding cryptocurrency market from China and Indonesia. The last two nations have been implementing harsh policies in regards to the digital currency market.  Despite the wave of negativity from China and Indonesia, Singapore still believes that Blockchain can be one of the important factors that will help the country become the global hub for technology.

Mr. Shanmugaratnam has also spoken in relation to the difference in the way how countries treat cryptocurrency market. He has highlighted that volumes of crypto trading is relatively small, just as the exposure to the financial system. He added:

 “For now, the nature and scale of cryptocurrency trading in Singapore does not pose risks to the safety and integrity of our financial system.

Further, connections between cryptocurrency trading and Singapore’s financial system are also not significant at present. Singapore’s banking system does not have any signficant (sic) exposure to global and local entities dealing in cryptocurrencies. We hence do not have broader, systemic risk concerns with regard to cryptocurrencies.”

Earlier in January, MAS managing director Ravi Menon has also appeared quite positive in regards to the cryptocurrency market future.

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