An official of Monetary Authority of Singapore (MAS), which serves as the central bank and financial regulator of Singapore, claims that MAS has no plans of regulating cryptocurrencies. According to the man, the central bank is to continue being “an open mind”, though there's the necessity of establishing anti-money laundering control in the future.
We’ve taken the approach that the currency itself does not pose the risk that warrants regulation. Our approach is to look at the activity around the cryptocurrency and then make an assessment of what regulation would be suitable. It is a known fact that cryptocurrencies are quite often abused for illicit financing purposes, so we do want to have AML/CFT controls in place. So those requirements apply to the activity around cryptocurrency, rather than the cryptocurrency itself.
MAS Managing Director
On top of that, Menon mentions that if cross-border remittance through cryptocurrencies like Bitcoin is more convenient and efficient, the central bank and scholars should focus more on how to use Blockchain and cryptocurrencies to benefit more people.
In fact, Singapore has always been in favour of the Blockchain technology and cryptocurrencies. Earlier this month, the Monetary Authority of Singapore unveiled the successful development of three different blockchain models for decentralized inter-bank payment and settlements. Thus, the prototypes were developed using R3’s Corda, the open-source Hyperledger Fabric and JP Morgan Chase’s Ethereum-based Quorum. On October 25, Singapore and Hong Kong announced a cooperation on a cross-border trade project based on Blockchain technology by linking their trade finance platforms.
Litecoin foundation has expressed its positive attitude on the republic's policy.
Singapore is indeed a nice place. We are happy that we were registered here. Good news for other startups here as well.
Thus, with “an open mind”, Singapore could be one of the most important countries for the development of Blockchain technology.