Singapore is often considered to have one of the most open economies in the world, but its relationship with the crypto industry has been mixed as of late. The fintech politician believes the city-state will deal with any wrongdoing “brutally and relentlessly.”
Crackdown on bad behavior in crypto
Speaking to the Financial Times, Sopnendu Mohanty, Chief Fintech Officer of the Monetary Authority of Singapore (MAS), said the focus will be on cracking down on bad behavior in the crypto industry, adding that the central bank does not tolerate such market participants.
“When someone has done something bad, we are brutal and unrelentingly tough.”
Needless to say, Terra’s collapse, a harbinger of this month’s rapid sell-off, has forced regulators to harden their stance on the industry. Mohanty believes the world at large is “lost in private currency,” fueling the ongoing turmoil in the market.
He admitted that Singapore has imposed an “excruciatingly slow” and “extremely draconian due diligence process” for licensing crypto-related companies. The boss also said:
“We were welcomed by many cryptocurrencies shouted at for not being friendly. My answer was: friendly for what? Friendly to a real economy or friendly to an unreal economy?”
Singapore has seen several crypto companies relocate to the Middle East this year. Many of these companies cited licensing delays and repeated warnings from authorities that they do not want retail investors to invest funds in crypto due to excessive risk.
Crypto exchanges ByBit and Binance, as well as hedge fund Three Arrows Capital, abandoned plans to do business in the country and moved to Dubai instead.
After the exodus of important market players, Singapore’s Deputy Prime Minister Heng Swee Keat announced the launch of the “Project Guardian”. The collaborative initiative aims to promote applications based on asset tokenization and decentralized finance (DeFi) are based. As part of Project Guardian, MAS will work with top banks, digital asset companies and digital infrastructure companies.
Three companies acquire the license to operate in the country
Despite the heightened stance, CryptoCom received approval in principle from the MAS to offer payment services within the country.
The latest approval will enable the Digital Asset Exchange to offer numerous settlement solutions under the Payment Services Act, including Digital Payment Token (DPT) services for Singaporean customers. Two other crypto firms — Genesis and Sparrow — also received approval to offer similar services.
Source: Crypto News Deutsch