Singapore Crypto Friendly: How the City-State Became a Hotspot for Cryptocurrency
New York City: Cryptocurrencies like Bitcoin, Ethereum, and Litecoin have been all over the news over the last year or so, and many countries are making an effort to embrace this new asset class. While there’s still plenty of confusion about what cryptocurrencies are, how they work, and whether or not they’re safe to invest in, most governments have found at least one way to make them work for their country – by becoming crypto friendly environments where investors can do business with relative freedom from government interference. The latest country to join this ranks? Singapore!
Singapore Crypto Friendly How the City-State Became a Hotspot for Cryptocurrency
What Has Led to This?
In 2017, Singapore’s Deputy Prime Minister Tharman Shanmugaratnam said that Singapore was open to cryptocurrencies and would work on regulating the industry. Singapore is working with other countries in the Association of Southeast Asian Nations (ASEAN) to develop guidelines for cryptocurrency regulation. In January 2018, it was reported that president Joko Widodo of Indonesia had instructed his ministers to speed up efforts to understand how digital currency works and make sure there is a legal framework.
The Monetary Authority of Singapore also released guidance on ICOs in September 2017, clarifying that tokens from an ICO may be considered securities under certain circumstances. The authority stated that companies should continue to apply sound corporate governance practices and due diligence on prospective investors when dealing with cryptocurrencies.
What Are The Benefits Of A Crypto-Friendly Singapore?
The government of Singapore has taken a progressive stance on cryptocurrency and blockchain. On September 18, 2018, the Monetary Authority of Singapore (MAS), issued two new statements to guide digital token exchanges and token issuers in Singapore. The first statement, Guidance on Ancillary Service Provider Requirements, clarified what type of ancillary service providers are considered regulated under MAS regulation. The second statement, Guidance On Guidelines For Self-Service Digital Token Platforms, set out guidelines for self-service digital token platforms including requirements that they apply to customer identification, know your customer (KYC) procedures and reporting suspicious transactions. Both statements aim to ensure that customer protection measures are upheld in the fast-evolving world of cryptocurrencies and tokens.
What Is Required To Start Crypto Business In Singapore?
How Singapore became crypto friendly. The Monetary Authority of Singapore (MAS) is eager to encourage innovation in financial technology and intends to be an early adopter of these technologies. In addition, the MAS has been proactive in promoting ICOs as a way to fund projects with innovative solutions. A number of regulatory changes have been made that makes it easier for ICOs to operate in Singapore, such as introducing new legislation that requires certain obligations be met by digital token issuers and exchanges. The MAS has also released guidelines on how securities laws apply to digital tokens and required cryptocurrency intermediaries like exchanges to register with them.
Is Regulation Necessary For Successful Growth?
There is no real answer to this question. In some cases, regulation has been good for cryptocurrency. For example, in Japan and South Korea, regulation caused an increase in adoption because it legitimized Bitcoin as a currency. Singapore is also crypto friendly because of their regulations but they are not as strict as other countries. Other times regulations have been bad for cryptocurrency such as China banning all cryptos or Vietnam outlawing them entirely.
What Should We Expect From The Future Of Cryptocurrencies In Singapore?
Cryptocurrency has been an increasingly popular topic in Singapore, attracting more and more attention as time goes on. While there are still questions about how cryptocurrencies will affect Singapore’s economy, it is clear that Singapore has taken steps to become a friendly place for cryptocurrency and blockchain enterprises to do business in.
In late 2017, the Monetary Authority of Singapore (MAS) released guidelines outlining their regulatory framework for cryptocurrency exchanges. The guidelines require cryptocurrency exchanges to register with MAS before they can offer trading or other services to consumers.
The guidelines also establish anti-money laundering requirements, requiring exchanges to know their customers and report any suspicious transactions which could be linked to unlawful activities such as terrorism financing.