Investing.com – While the UK government seems open to the cryptocurrency market, Singapore is trying to prevent its widespread use.
The Monetary Authority of Singapore (MAS) has published two consultation requests in which it calls for strict regulation. The central bank assumes that cryptocurrencies are in general so risky that they should not be available to the general public. However, the technology behind cryptocurrencies at the same time offers so many opportunities that a total ban would be impossible to implement.
From their point of view, it would be advisable to ban digital asset providers from offering their services to individuals. Also, credits based on cryptocurrencies should not be part of the offer, nor should payment by credit card as a possible payment option.
While the regulated banking sector has a free hand to issue stablecoins, other issuers must prove that they have enough liquidity to maintain business for at least six months. This is the period during which it is estimated that in the event of a crisis, there has been either a recovery or an orderly liquidation of the activity.
MAS Deputy Director General Ho Hern Shin said:
“The objective of the more elaborate regulatory regime for stablecoins is to support the development of value-added payment applications for stablecoins in Singapore. While continuing to work with industry stakeholders to explore the potential benefits of tokenization and distributed ledger technology, MAS will make appropriate adjustments to its regulatory system to manage the associated risks.”
By Marco Oehrl