Singapore Deputy Prime Minister: we have no reason to prohibit encrypted currency transactions

release:2018-02-07 16:34:16 publisher:ARTS coin_Global art digital asset trading

Singapore's central bank has studied encrypted money and its trading model, and the deputy prime minister has stressed that there is no reason to ban people from trading in encrypted money.

Tharman Shanmugaratnam, Singapore's deputy prime minister and head of the central bank, spoke at a parliamentary meeting yesterday, when three lawmakers asked if there was a possibility of banning encrypted currency transactions

Referring to China's ban on domestic exchanges and South Korea's tough policy on local markets, the lawmakers asked whether the central bank might take steps to ban Bitcoin or encrypted currency trading.

The deputy prime minister pointed out that "encrypted money is an experiment"-its users are scattered around the world and are still in the early stages of development. He said it is too early to define whether encrypted money is successful. Once encrypted money succeeds, the broad implications will also take time to understand.
Shanmugaratnam gave a more direct response to the possibility of Singapore adopting a similar policy to China:

The Monetary Authority of Singapore (MAS) is closely studying the progress and the potential risks it poses. We don't have a good reason to ban encrypted currency transactions, but we're going to ask the relevant intermediaries to comply with our anti-money laundering rules.

Shanmugaratnam's view is similar to that expressed last year by Ravi Menon, president of MAS. He said Bitcoin itself does not pose a risk, nor does it require regulation. Instead, intermediaries such as exchange operators need to be regulated. Such businesses must comply with existing anti-money laundering and anti-terrorism financing laws and regulations.

In yesterday's speech, Shanmugaratnam also mentioned:

There are now two big use cases of encrypted money. First, payment, and second, an increasingly important application, is that encrypted money is itself an asset. People trade encrypted money to make a profit from it.

In addition, he said that the regulation of encrypted currency exchanges would bring encrypted currencies such as Bitcoin under the retail payment services law and that the public should also be aware of the investment risks of encrypted currencies.

The sharp drop in Bitcoin prices in recent weeks is evidence of the risks.

However, the official stressed that Singapore authorities will take an open and cautious approach to the development of an encrypted currency.

He said:

We will continue to encourage experimentation in the area of block chains , which may involve encryption of money , as this kind of innovation may be effective in the economic or social aspects , but at the same time we will focus on new risks .

Source: Babbit information