Singapore’s chief minister and chairman of the central bank, the Monetary Authority of Singapore (MAS), said there should only be “a regulatory system” for crypto and traditional finance. Moreover, he pointed out that regulators should provide “extreme clarity as to what an unregulated market is,” so investors know they are entering at their own risk.
“A regulatory system”
Tharman Shanmugaratnam, Singapore’s Chief Minister who is also the Chairman of the country’s central bank, the Monetary Authority of Singapore (MAS), spoke about cryptocurrency regulation during a round table 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 also currently Coordinating Minister for Social Policies and Advisor to the Prime Minister for Economic Policies.
“Something is very clear, whether it’s crypto or traditional finance, you have to regulate things like money laundering. It’s very clear,” he began.
“But beyond that, if you have to think about regulating crypto the same way we regulate banks, insurance companies, etc. – for prudential reasons, for financial stability reasons – I think we need to step back and ask the fundamental philosophical question,” the minister explained. “Does this legitimize something that is inherently purely speculative and, in fact, a bit crazy?” he said, adding:
Or is it better to just provide ultra clarity on what an unregulated market is and if you go there, you go there at your own risk. I lean a little more towards the latter point of view.
The MAS chairman went on to clarify that certain segments of the crypto market should be regulated, pointing to stablecoins as a possible area of oversight.
“But to start getting into a game of regulation, whether it’s ostrich eggs or crypto or whatever, it’s going to be a never-ending game and I’m not sure it’s the right path. to follow,” he said.
While emphasizing that “consumer education” is important, he noted: “But also just ultra-clarity – make it very clear that this is a risk you are taking at your own expense, and by the way , please don’t risk it because it’s going to be stupid. I prefer this approach.
Minister Shanmugaratnam clarified, “And then if crypto or blockchain or any of the parts of that ecosystem would like to do things that traditional finance does, you apply the exact same regulations to that – capital, liquidity, reserve of support – 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 Singaporean Minister Tharman Shanmugaratnam? Let us know in the comments section below.
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