Get trading recommendations and read reviews on Hacked.com for only $ 39 a month
At a conference, Ravi Menon, the general manager of the Monetary Authority of Singapore (MAS), the country's central bank, said the country does not intend to regulate bitcoin and the cryptocurrency market in the near term.
Essentially, Mr. Menon shared the same sentiment as the President of the European Central Bank (ECB), Mario Draghi, who, as reported by CCN, explained that the ECB is not planning yet regulatory framework for cryptocurrency. Draghi pointed out that the ECB believes that the bitcoin market must mature for the institution to consider regulating it.
"We have adopted the approach that the currency itself does not pose the risk that justifies regulation.It is a known fact that cryptocurrencies are often misused for purposes unlawful financing, we therefore want to implement AML / CFT controls, so these requirements apply to the activity around cryptocurrency, rather than the cryptocurrency itself. same. "
What happens if Singapore regulates bitcoin in the long run?
Although Menon made it clear that there would be no strict regulation for the Singapore cryptocurrency market yet, he reiterated that the MAS will continue to be "open". "Mind" with crypto-currencies and bitcoins. More importantly, Menon noted that in the future, if MAS and the Singaporean government sees the need to regulate the bitcoin market, it will provide regulatory frameworks for businesses and investors.
As Menon explained:
"Our approach is to look at the activity around cryptocurrency and then make an assessment of the regulations that would be appropriate."
If Singapore regulates its markets for cryptocurrency and bitcoins, there is a high probability that with Japan, Hong Kong and South Korea, Singapore will become an important market bitcoin. Therefore, Asia should emerge as the central region of cryptocurrency, considering that Japan is responsible for at least 68% of bitcoin transactions and that the South Korean Ethereum market remains the largest stock market in the world. Aether in the world.
In the long run, if MAS decides to regulate its bitcoin market, the Japanese government's roadmap to establish a national program for cryptocurrency trading will likely be implemented. Cryptocurrency exchanges will receive licenses to operate as regulated financial service providers and will be treated fairly as legitimate financial companies in the country.
When will Singapore regulate bitcoin?
Following the imposition by the Chinese government of a national cryptocurrency trading ban, TideBit revealed that a large number of traders had migrated as a leader of An over-the-counter bitcoin trading platform based in Hong Kong. from the Chinese market to neighboring markets such as Hong Kong and Japan.
Chief of TideBit Operations Terence Tsang stated:
"The ban did not prevent them [Chinese investors] from buying cryptocurrencies.In recent weeks, we have seen many mainland customers open accounts at TideBit. always play the game. I see a growing need in that they will come to Hong Kong or Singapore to buy cryptocurrency, "he said.
In the future, if the Singaporean government regulates its bitcoin market, there is a strong likelihood that traders from regions like China and Russia with ambiguous bitcoin regulations will migrate to the Singaporean market to trade and use the bitcoin. In addition, leading Bitcoin companies, such as ZebPay, India's second largest bitcoin exchange, are already based in Singapore, due to the country's friendly regulation for start-ups.
Image from Shutterstock to photo