The global regulation of cryptocurrencies varies greatly: China has cracked down on a large number of cryptocurrency activities in recent months, while Japan has only recently allowed specialized cryptocurrency investment funds. On the other hand, El Salvador has accepted Bitcoin (Bitcoin) As legal tender.
As financial centers around the world seek to regulate the industry, Singapore aims to establish itself as the capital of global crypto-related companies. According to Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), if the city-state is not one step ahead in how to deal with cryptocurrencies, it may be left behind.
“For crypto-based activities, it is basically an investment in the future, and it is not clear how it will be,” said Menon, who has been the director of MAS for about 10 years.
Due to its openness to cryptocurrency, the country is at the forefront of this movement and has developed a legislative framework that facilitates its use. The tax system has also been adjusted to encourage the development of the industry.
Menon stated that MAS is implementing “very strict regulations” to allow companies that meet its requirements and respond to the many threats to their operations.
Menon said that Singapore must strengthen security measures to deal with threats such as illegal movements.City state Has become a magnet for attracting cryptocurrency companies From Binance Holdings, which has had a series of disputes with global regulators, to Gemini, a US-based operator targeting institutional investors.
After the implementation of the Payment Services Law in January 2020, 170 companies have applied for MAS licenses, bringing the number of applicants to about 400.
Since then, only a few cryptocurrency companies have obtained coveted licenses, and two of them have been rejected. Approximately 30 applicants withdrew their applications after interacting with the regulator.
As Report By CointelegraphDBS Group is Singapore’s largest bank and a pioneer in creating a digital token trading platform and providing tokenized services. It is one of the organizations that has obtained a license. Other banks and technology companies in this city-state, such as OCBC Bank and IBM, also joined.