The Far East has something of a love-hate relationship with Bitcoin, as while Japan has gone to great lengths to support the cryptocurrency, China’s approach has been much more frosty. Singapore’s opinion of Bitcoin might not have been of great significance in the past, but given the delicate balance between legalization and outright bans, it suddenly appears to carry much more weight. In a good sign for Bitcoin, Tharman Shanmugaratnam (Singapore’s Deputy Prime Minister and Head of Monetary Authority of Singapore), has recently spoken about Singapore’s decision not to ban its use, along with addressing how it features within the country’s long-term regulatory plans.
Singapore takes a stand
Shanmugaratnam faced direct questions on Bitcoin during a recent parliamentary meeting, with his answer making up one of the fourteen official responses issued. Speaking on how the Monetary Authority of Singapore views Bitcoin, Shanmugaratnam said, “The Monetary Authority of Singapore has been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here, but we will be subjecting those involved as intermediaries to our anti-money laundering regulations. And we will keep highlighting to Singaporeans that they could lose their shirts when they invest money in cryptocurrencies.”
This news is incredibly encouraging, as his words certainly have many believing that Singapore could head down the same route as Japan, opening its arms both Blockchain and cryptocurrency innovation. With Indonesia and China standing against Bitcoin, and South Korea’s stance being up in the air at this point, it’s great to see Singapore make the right noises when it comes to being a worldwide hub for all things crypto.
Making all the right noises
The differences between Singapore and partnering nations when it comes to the cryptocurrency market have become pretty evident in recent months, with this certainly not escaping Shanmugaratnam. Speaking about the disparity he said, “For now, the nature and scale of cryptocurrency trading in Singapore does not pose risks to the safety and integrity of our financial system. Further, connections between cryptocurrency trading and Singapore’s financial system are also not significant at present. Singapore’s banking system does not have any significant exposure to global and local entities dealing in cryptocurrencies. We hence do not have broader, systemic risk concerns with regard to cryptocurrencies.”
The “Lion City” opens the door to Bitcoin and Blockchain!
When it comes to cryptocurrency trading volumes and general holdings, Singapore is comparatively small when compared to surrounding nations. However, that doesn’t take anything away from the fact that it remains open to both Bitcoin and Blockchain technology, as one more adopting nation brings the crypto market one step closer to global acceptance!