Investing.com – While the UK government seems open to the cryptocurrency market, Singapore is trying to prevent its widespread use.
The Monetary Authority of Singapore (MAS) has published two advisory requests calling for strict regulation. The central bank assumes that cryptocurrencies in general are too risky to be available to the general public. However, the technology behind cryptocurrencies simultaneously offers many opportunities that may be impossible to implement.
From their point of view, it would be advisable to prevent digital asset providers from offering their services to individuals. Also, crypto-based credits should not be part of the offer, and no credit card should be paid as a possible payment option.
While the regulated banking sector has the discretion to issue stablecoins, other issuers must prove they have sufficient liquidity to sustain business for at least six months. This is the period during which it is estimated that, in the event of a crisis, there has been either a recovery or an organized liquidation of the activity.
The institute’s deputy director-general, Hu Hern Xin, said:
“The goal of a more detailed regulatory regime for stablecoins is to support the development of value-added payment applications for stablecoins in Singapore. While continuing to work with industry stakeholders to explore the potential benefits of tokenization and distributed ledger technology, MAS will make appropriate adjustments to its regulatory regime to manage risk. accompanying”.
Written by Marco Uhrl