Can Singapore's Recent Regulations Support Its Digital Asset Goals?
Focusing on institutional crypto investments amid laying down laws for retail investors.
Singapore has made its supportive stance on the digital revolution apparent as the country continues to carry out regulations and licensing in an effort to become a hub for digital assets.
After facing various struggles like the Three Arrows Capital bankruptcy this past year, Singapore needed an improved set of regulatory measures – prompting both worry and acceptance toward Singapore’s evolving digital asset activities.
The Monetary Authority of Singapore (MAS), the city-state’s central bank, has set its mission on regulating digital asset transactions while attempting to diminish the negative assumptions about cryptocurrencies.
Seeking to both protect its residents while still participating in fintech advancements, Singapore has made notable recent moves in transforming its country into a center for digital assets and crypto.
Using the current bear market to build new relations and drive innovation, Singapore has set its focus on becoming a major market for institutional crypto investments as MAS still finds some concerns surrounding its retail crypto investors.
Earlier this week, MAS gave the crypto exchange, Coinbase the in-principle approval to operate and provide digital payment services in Singapore. Coinbase will also work with Singapore’s officials in setting a crypto-friendly regulatory framework in place for the country to form sensible yet secure laws.
Following Coinbase, Blockchain.com was also given the okay to offer crypto-related services in Singapore on October 13. Blockchain.com relies on institutional clients for just about half of the exchange’s overall business.
Expressing possible room for growth with its institutional locations, Blockchain.com found Singapore to be an attractive customer for the exchange given Singapore’s embracement of crypto.
In a 2021 interview, the managing director of MAS, Ravi Menon shared with Bloomberg, “If and when a crypto economy takes off in a way, we want to be one of the leading players. It could help create jobs, create value-add, and I think more than the financial sector, the other sectors of the economy will potentially gain.”
Combining Singapore’s inviting approach with practical regulations has sparked the country’s traditional banks to begin exploring possible areas for expansion.
Toward the end of September, the largest bank in Singapore, DBS, opened crypto trading services for select retail investors through its platform. About 100,000 accredited investors who met specific criteria have been welcomed to conduct crypto-related transactions on DBS’s DEX.
Opening more opportunities for retail investors to rejoin the digital asset markets, DBS has slowly introduced a way for firms to participate in crypto legally and cautiously while MAS determines Singapore’s exact guidelines.
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