Deputy Prime Minister Heng Swee Keat of Singapore warned regular investors against investing in cryptocurrency. He said during this week’s ATxSG event in Singapore that retail investors should avoid crypto investment. Asia Tech x Singapore (ATxSG) is Asia’s premier tech event, bringing together thought-provoking debates at the interfaces of technology, society, and the digital economy. This year the event is scheduled from May 31 to June 3, 2022.
Views of Deputy Prime Minister Singapore
The Deputy Prime Minister used the example of the death of the cryptocurrency Terra (LUNA) and the algorithmic stablecoin Terrausd (UST) to further prove his point. When both cryptocurrencies declined in value, investors lost a large amount of money. Despite many issues and negative views about cryptocurrency, he feels that digital dollars have the potential to transform the finance sector.
The Deputy Prime Minister stated following on the crypto regulation:
“We must continue to adjust our laws to ensure that regulation stays facilitative of innovation, while also addressing the primary concerns that crypto assets bring,”.
Cryptocurrency regulator in Singapore
The Monetary Authority of Singapore (MAS) is the major regulator of Singapore’s crypto sector. It is also the central bank of Singapore. Many companies have applied for a licence to run a cryptocurrency exchange to the MAS. However, over 100 enterprises have failed to meet regulatory criteria. The MAS has permitted only 11 firms in total for use of digital payment tokens.
Recent Development in Crypto Sector Singapore
The central bank stated in April that the licensing procedure for digital asset service providers should be more stringent. According to the MAS, this is required for a responsible global crypto hub with creative players and excellent risk management capabilities.
Singapore is the world’s most crypto-friendly nations
Singapore projected a tenfold increase in crypto-related investments of USD1.48 billion in 2021, up from USD110 million in 2020, according to a recent KPMG Pulse of Fintech study. The increase was attributed in part to government initiatives to improve the financial sector, including the creation of a special-purpose acquisition company (SPAC) legal structure to position the country as a suitable home for fast-growing enterprises. According to another Coincub research, Singapore was among the top five most crypto-friendly countries in the world in Q1 2022.
Singapore was likewise rated 1st in the fourth quarter of 2021. Singapore slipped to second place in the first quarter of 2022 as a result of government measures to outlaw crypto service advertising by Virtual Asset Service Providers (VASPs) outside of their websites, as well as a crackdown on Bitcoin ATMs. According to a statement published earlier this year by the central bank, crypto trading wasn’t for the general public and must not be promoted.
