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While India and China, together with a few large US banks are going with full forces against Bitcoin and cryptocurrencies, Singapore is going “pro” at the same time. Cointelegraph reported that Singapore’s deputy prime minister, Tharman Shanmugaratnam, said that the country will not be banning cryptos in the new future. None such plans are foreseen in their regulatory framework.
The minister and minister in charge of regulatory body the Monetary Authority of Singapore (MAS), both confirmed the “loose” cryptocurrency regulatory framework, commenting:
“…(MAS) has been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here,” the deputy PM said.
“But we will be subjecting those involved as intermediaries to our anti-money laundering regulations. And we will keep highlighting to Singaporeans that they could lose their shirts when they invest money in cryptocurrencies.”
In addition to Singapore, Japan is also at the forefront of cryptocurrency innovations and developments. Both countries are now vying for becoming “top financial and tech hubs” of the world. However, one important factor for Singapore is that the exposure of the country to cryptocurrency risk is much smaller than, say in China or India. This is what Mr. Shanmugaratnam said:
“For now, the nature and scale of cryptocurrency trading in Singapore does not pose risks to the safety and integrity of our financial system. Further, connections between cryptocurrency trading and Singapore’s financial system are also not significant at present. Singapore’s banking system does not have any significant (sic) exposure to global and local entities dealing in cryptocurrencies. We hence do not have broader, systemic risk concerns with regard to cryptocurrencies.”
There is yet to see how Singapore will continue to develop as a global cryptocurrency hub. In addition, the country is one of the top places for crypto experts to find jobs, because of the loose regulatory framework on altcoins, as well as the constant innovations taking place.