MAS Managing Director: “Yes To Digital Asset Innovation, No To Cryptocurrency Speculation”
MAS Managing Director: “Yes to digital asset innovation, no to cryptocurrency speculation.” In a speech at the Green Shoots Seminar on August 29th, Ravi Menon, the Managing Director of the Monetary Authority of Singapore (MAS), mentioned several points about the crypto industry.
At the Green Shoots Seminar this morning, MAS MD Ravi Menon, explained the complexities of the #digitalasset ecosystem and its different components, & what MAS is actively promoting and discouraging; and what are the risks MAS is seeking to manage. https://t.co/6LkxiaFpZr
— MAS (@MAS_sg) August 29, 2022
Mixed Signals in Digital Assets and Crypto
On August 29th, Ravi Menon, the Managing Director of MAS, addressed the issues in digital assets and crypto. Menon mentioned MAS seems to be giving mixed signals in digital assets and crypto.
On the one hand, MAS wants to make Singapore a FinTech hub. MAS also supports innovation in digital assets and keeps wanting to charm leading crypto players to Singapore. On the other hand, MAS requires a “stringent and lengthy licensing process” for people who want to make and enter crypto-related services.
Menon added, “MAS has also been issuing strong warnings against retail investments in cryptocurrencies, and has been taking increasingly stronger measures to restrict retail access to cryptocurrencies.”
There are also some concerns from observers. People said MAS used to make pro-crypto decisions, but now they are overly cautious and losing its appeal as a global crypto hub. Menon said MAS has to do a better job explaining the situation.
MAS Discourages Speculation in Crypto
Cryptocurrencies are actively traded in the market and often are the subject of speculation. The prices do not relate to “any underlying economic value related to their use on the distributed ledger.” Also, the extreme price volatility of the crypto market makes them not a viable form of money or investment asset.
Menon said, “This speculation in cryptocurrencies is what MAS strongly discourages and seeks to restrict.”
Based on what Menon said at the Green Shoots Seminar on August 29th, it can hint that MAS is trying to make a safe environment for the community to get involved.
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