The Monetary Authority of Singapore has indicated that it will not develop regulations for non-fungible tokens for the time being, as this is an emerging market.
Monetary Authority of Singapore (MAS) Senior Minister Tharman Shanmugaratnam said that the regulator will not develop any rules to oversee collectible tokens in the near future. He explained that the industry is in its infancy and too early to regulate.
According to Shanmugaratnam, MAS cannot oversee all the products people want to invest their money in. Therefore, the agency will not interfere in the industry and will take a neutral position regarding NFTs.
The minister added that regulating this sector would be a complex task, requiring a careful assessment of the legal risks NFT holders might face.
It also remains to be seen whether existing regulations can protect the rights of collector token holders. For example, users who own digital images in the form of NFTs need to be aware of their ownership rights, and this requires clarification in the regulatory framework.
“The seeming uniqueness of NFTs and speculation with them contribute to the “inflation” of their rate. This exposes investors to the risk of serious financial losses when the hype around these instruments subsides,” Shanmugaratnam said.
According to a KPMG report, in 2021, investments in the cryptocurrency industry in Singapore grew to $1.48 billion, while in 2020 the investment did not exceed $110 million. Therefore, in January, MAS banned the advertising of cryptocurrencies and the installation of crypto ATMs in the country, warning the public about the risks of investing in digital crypto assets .
Source: Bits
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