January 29, 2023

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Regulators should not legitimize ‘purely speculative’ crypto activity: Singapore’s monetary authority chief

Regulators must not legitimize “purely speculative” action in crypto marketplaces following the collapse of cryptocurrency exchange FTX, explained the chairman of the Monetary Authority of Singapore (MAS) at the Planet Economic Forum’s Davos 2023 convention.

See linked write-up: Common digital payments network for stablecoins, CBDCs launches at Davos

Quick points

  • In the course of a panel on banking in today’s unsure environment, MAS main Tharman Shanmugaratnam requested: “If we control cryptocurrency the exact way we control banking companies and insurance plan providers, will that legitimize a thing that is inherently and purely speculative and, in point, a bit insane?” 
  • “Or are we better off offering extremely clarity to what’s an unregulated market, and if you go in, you go in with your have possibility? I lean a little bit additional to the latter perspective,” he concluded. 
  • Having said that, Shanmugaratnam included: “Some points are extremely apparent, irrespective of whether it’s cryptocurrency or common finance, you have received to control for points like funds laundering.” 
  • Other panelists agreed that regular kinds of regulation are desperately necessary in the cryptocurrency space to protect from dollars laundering and other illicit activity.
  • According to a report from crypto data aggregator CoinGecko, losses from hacks and exploits in the crypto market stood at US$2.8 billion past 12 months, the largest amount of money exploited in a one yr considering that 2013.
  • François Villeroy de Galhau, the Bank of France governor, claimed it is an “utmost priority” that regulators implement anti-revenue laundering principles in put for cryptocurrency companies but included that phone calls for an outright ban on cryptocurrency are “a little bit exaggerated.”
  • “It’s not a concern of if we have to control or not, for sure, we have to regulate… but we have to control in a coordinated manner, we have to have global policies,” reported Villeroy. 

See connected short article: CryptoSlam, Forkast.News merge to form Internet3 knowledge intelligence platform