Singapore has recently taken a friendly stance on cryptocurrencies, a stand reiterated by no less than deputy prime minister Tharman Shanmugaratnam in a series of statements.
Published on February 5, the 14-part statement expounds on the government’s earlier decision “not to ban” cryptocurrency in the country. Deputy Prime Minister Shanmugaratnam, who also happens to be the minister in charge of the Monetary Authority of Singapore (MAS), said:
“…(MAS) 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.”
He continued on to say that for now, the government does not find these cryptocurrencies to be a threat to country’s 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.”
This position makes Singapore stand out in the region, especially with the likes of China and Indonesia having a less than welcoming approach to Bitcoin and other cryptocurrencies in general.