The head of the financial regulator and the central bank of Singapore announced his intention to “merge” cryptocurrency companies and banks. October 10, Bloomberg reported that the decision was due to the growing number of complaints about problems with bank support.
During the interview, the Managing Director of the Monetary Authority of Singapore (MAS), Ravi Menon, said that regulators are considering creating a balanced and effective regulatory framework for cryptocurrency companies. Menon reported:
“What we are trying to do is to bring the banks and cryptocurrency fintech startups together to see if there is some understanding they can reach… The nature of this business is a bit different, so banks may need to employ other ways in which they can establish bona fide. I hope we can bring minds together on this so that we can get over this hurdle.”
It is worth noting that Singapore has established itself as a state with effective regulation of the cryptocurrency sphere and innovative technologies. Menon, in turn, is known for its support of the cryptocurrency sphere and the Blockchain technology.
Despite his open stance, Menon is still extremely cautious about the growing field. As noted by Bloomberg, he urged to settle the relationship between cryptocurrency companies and banks, while not making any accusations against the latter. Menon reported:
“Some of these activities are indeed quite opaque.”
It is worth noting that the position of Singapore in the regulation of the cryptocurrency sector is significantly different from most Asian countries.
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