{"id":16800,"date":"2023-01-24T03:40:26","date_gmt":"2023-01-24T03:40:26","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/singapore-regulator-advocates-one-regulatory-system-for-crypto-and-traditional-finance-regulation-bitcoin-news\/"},"modified":"2023-01-24T03:40:26","modified_gmt":"2023-01-24T03:40:26","slug":"singapore-regulator-advocates-one-regulatory-system-for-crypto-and-traditional-finance-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/singapore-regulator-advocates-one-regulatory-system-for-crypto-and-traditional-finance-regulation-bitcoin-news\/","title":{"rendered":"Singapore Regulator Advocates ‘One Regulatory System’ for Crypto and Traditional Finance \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Singapore\u2019s senior minister and the chairman of the central bank, the Monetary Authority of Singapore (MAS), says there should be just \u201c<\/strong>one regulatory system\u201d for both crypto and traditional finance.<\/strong> In addition, he stressed that <\/strong>regulators should provide \u201cultra clarity as to what\u2019s an unregulated market,\u201d so investors are aware that they go in at their own risk.<\/strong><\/p>\n

\u2018One Regulatory System\u2019<\/h2>\n

Tharman Shanmugaratnam, Singapore\u2019s senior minister who is also the chairman of the country\u2019s central bank, the Monetary Authority of Singapore (MAS), talked about cryptocurrency regulation during a panel discussion<\/a> with other regulators and bankers at the World Economic Forum last week.<\/p>\n

Shanmugaratnam previously served as Singapore\u2019s deputy prime minister and the minister for finance. He is also currently the coordinating minister for social policies and adviser to the prime minister on economic policies.<\/p>\n

\u201cSomething is very clear, whether it\u2019s crypto or traditional finance, you gotta regulate for things like money laundering. So that\u2019s very clear,\u201d he began.<\/p>\n

\u201cBut beyond that, if you have to think about regulating crypto the same way we regulate banks, insurance companies, and so on \u2014 for prudential reasons, for financial stability reasons \u2014 I think we\u2019ve got to take a step back and ask the basic philosophical question,\u201d the minister explained. \u201cDoes that legitimize something that\u2019s inherently purely speculative, and in fact, slightly crazy?\u201d he said, adding:<\/p>\n

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Or are we better off just providing ultra clarity as to what\u2019s an unregulated market and if you go in, you go in at your own risk. I lean a bit more towards the latter view.<\/p>\n<\/blockquote>\n

The MAS chairman proceeded to clarify that some segments of the crypto market should be regulated, pointing to stablecoins as a possible area of oversight.<\/p>\n

\u201cBut to start getting into a game of regulating, whether it\u2019s ostrich eggs or crypto or anything else, it\u2019s going to be a never-ending game and I\u2019m not sure that\u2019s the right way to go,\u201d he opined.<\/p>\n

While emphasizing that \u201cconsumer education\u201d is important, he noted: \u201cBut also just ultra clarity \u2014 make very clear that this is a risk you are taking at your own expense, and by the way please don\u2019t take that risk because it\u2019s going to be foolish. I prefer that approach.\u201d<\/p>\n

Minister Shanmugaratnam further detailed: \u201cAnd then if crypto or blockchain or any of the parts of that ecosystem would like to do things that traditional finance is doing, you apply exactly the same regulations to that \u2014 capital, liquidity, reserve backing \u2014 exactly the same regulations.\u201d He concluded:<\/p>\n

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So people are very clear. There is one regulatory system for everything. And if you\u2019re outside of the regulatory system, buyer beware.<\/p>\n<\/blockquote>\n

What do you think about the statements by Singapore Senior Minister Tharman Shanmugaratnam? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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