The country's crypto rules will involve a "stringent" licensing process: Managing Director of the central bank

Ravi Menon, the Managing Director of Singapore’s central bank, believes that crypto can be used for criminal purposes and that it should be carefully regulated as a result.

The Monetary Authority of Singapore’s (the country’s central bank) chief, Ravi Menon, has stated that the country’s crypto rules will involve a “stringent” licensing process.

He believes that enforcing strict regulations will transform the city-state into a global digital asset hub.

Will enact comprehensive market laws

Despite its explosive growth in recent years, the cryptocurrency market remains a dangerous investment for retail investors. In a recent interview, Ravi Menon, the MAS’s Managing Director, warned against this. Bitcoin and other cryptocurrencies, he said, may be used for money laundering and terrorism financing.

As a result, local governments must enact comprehensive market laws that provide safety and clarity to the general public.

Menon claimed that Singapore wants to become a worldwide crypto hub, but that in order to do so, the licensing process must be “rigorous:”

Menon added that Singapore’s central bank is eager to strike a balance between promoting the fast-growing digital asset sector while also enforcing the necessary regulations.

According to the CEO, individuals should be “informed of money laundering and terrorism financing risks.” He does, however, believe that retail investors should avoid “dabbling with cryptocurrencies.”

Singapore’s growing investors

The Asian city-state is one of the world’s most technologically advanced nations. As a result, it’s no surprise that digital assets are very popular among the locals.

According to a recent survey, 43% of Singaporeans possess cryptocurrencies, with 46% saying they will invest in the market by 2022.

The authorities, on the other hand, are overwhelmingly enthusiastic about the asset class. Menon started a few months ago that banking regulators had no plans to outright ban crypto ventures, but rather to impose “tight control” on them.

Another directive was released by the Singaporean Parliament this month. Only digital asset service companies based in the country but operating on foreign soil will need to seek a regulatory license, according to the statement.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing