Singapore Wants to Attract Cryptocurrency Exchanges with New Regulations

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As cryptocurrencies expand, some countries are working so as to attract more and more companies to their territories. And this is the case of Singapore. The Monetary Authority of Singapore is looking to make some regulatory changes so as to be a better option for companies to settle their operations in the Asian country.

New Crypto-Friendly Regulations

There are different nations in the world that are trying to offer competitive and crypto-friendly regulations. This is a very positive way for enterprises and companies to locate their operations in these countries.

Singapore announced in the past that it was not thinking to regulate cryptocurrencies per se, but instead all the activities around them. That means that the digital assets were going to operate freely in the country.

Ravi Menon, Managing Director at the Monetary Authority of Singapore, said:

“Our attitude is to keep an open mind about it [Bitcoin]. Very few jurisdictions regulate cryptocurrencies per se. The currency itself does not pose the kind of risk that require regulation. Our intention is to look at the activity around the cryptocurrency and then make an assessment about which regulation would be suitable.”

This time, a new consultation paper puts on the discussion table a three-tiered system of regulation. They explain that different market operators pose different risks and should be regulated in different way.

The MAS explained:

“MAS has observed the emergence of new business models in trading platforms, including trading facilities that make use of blockchain technology, or platforms that allow peer-to-per trading without the involvement of intermediaries. As the currency RMO regime has been in place since 2002, it is timely to review the regulatory framework for market operators to ensure that it continues to meet the demands of the changing landscape.”

Cryptocurrency Regulations Improved

At the moment there are only two categories available: approved exchanges and recognized market operators. With the new regulations, smaller operators, or start-ups will have an easier way to set up their businesses in the country.

That means that they will have not so important capital requirements to start running their companies. Moreover, these operators will also be able to engage overseas so as to expand their operations. But, all these changes need yet to be approved.

Those companies that are able to grow, then they will be affected by the higher regulatory tier, facilitating competition and business scalability.

Image Courtesy of Pixabay

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