Singapore wants to position itself as a global cryptocurrency hub, says the regulator

The regulation of cryptocurrencies varies widely around the world: China has taken action against crypto activities in recent months, while Japan has only recently approved mutual funds specializing in cryptocurrencies. El Salvador, on the other hand, has accepted Bitcoin (BTC) as a legal currency.

As financial centers around the world try to regulate the sector, Singapore aims to establish itself as the world capital for cryptocurrency-related companies. According to Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), the city-state could have been left behind if it hadn’t had an advantage in dealing with cryptocurrencies.

“Cryptocurrency-based activities are basically an investment in a future-oriented future, the shape of which is currently unclear,” said Menon, who has headed MAS for around 10 years.

Singapore wants to position itself as a global cryptocurrency hub, says the regulator
Singapore wants to position itself as a global cryptocurrency hub, says the regulator

The country is at the forefront of this movement thanks to its openness to cryptocurrencies and has developed a legal framework that encourages their use. The tax system was also changed to help the industry grow.

The MAS carries out a “very strict regulation”. to enable companies to meet their needs and cope with the many threats to operations, Menon said.

Singapore needs to step up its security measures to address threats like illegal flowssaid Menon. The city-state has become a magnet for cryptocurrency companies, from Binance Holding, which has had a number of disputes with regulators around the world, to Gemini, a US-based operator targeting institutional investors.

After the implementation of the Payment Services Act in January 2020, 170 companies received a license from the MAS, bringing the number of applicants to around 400.

Since then, only a handful of cryptocurrency companies have received the coveted licenses, and two have been rejected. About 30 applicants withdrew their applications after interacting with the regulator.

As reported by Cointelegraph, DBS Group, Singapore’s largest bank and pioneer in creating a platform for exchanging digital tokens and offering tokenization services, was one of the organizations that received the license. Other city-state banks and tech companies like OCBC and IBM have also joined.

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