The Chairman of the Monetary Authority of Singapore (MAS), Tharman Shanmugaratnam, questioned the need to regulate the crypto industry by analogy with the traditional financial market.
Speaking last week at the World Economic Forum (WEF) in Davos, Tharman Shanmugaratnam urged global regulators to think carefully about regulating the cryptocurrency market. It would seem that in order to prevent money laundering through cryptocurrencies, the industry must comply with the requirements for banks, insurance companies and other financial institutions. However, this causes a lot of controversy, the minister believes.
“A philosophical question arises: “Does this mean that a speculative and slightly crazy market will be legal?” Or is it better to just be as clear as possible about what an unregulated market is, and if investors decide to enter it, they do so at their own peril and risk. I am more inclined towards the latter point of view,” says Shanmugaratnam.
The MAS chairman clarified that some segments of the crypto market really should be regulated, referring to stablecoins. Shanmugaratnam believes that their issuers or blockchain companies must comply with standard capital, liquidity, reserve and regulatory requirements. However, informing users about the risks of cryptocurrencies is also important, the minister believes.
“You can play regulation of ostrich eggs or cryptocurrencies endlessly, and I’m not sure if this is the right way. There is one system of regulation for the entire financial sector. And if something is outside of this system, be careful,” the MAS chairman concluded.
Shanmugaratnam said last year that he sees no need for oversight of the NFT market as it is still in its early stages of development.
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