The scale of the cryptocurrency market in Singapore stays small, Senior Minister Tharman Shanmugaratnam has stated.
The mixed peak each day buying and selling volumes of three main SGD-quoted cryptocurrencies – Bitcoin, Ethereum and XRP2 – was 2 per cent of the typical each day buying and selling quantity of securities on the Singapore Trade final 12 months, he identified on Monday.
Mr Tharman, who can be chairman of the Financial Authority of Singapore (MAS), was responding in writing to questions in Parliament from Mr Desmond Choo (Tampines GRC) and Mr Murali Pillai (Bukit Batok) on the crypto asset market in Singapore and the way these exchanges are regulated.
Cryptocurrencies like Bitcoin, which can be used for fee functions, are certainly one of two widespread kinds of crypto property, stated Mr Tharman. They are often extremely unstable as their worth is often not associated to financial fundamentals, he added.
“They’re therefore extremely dangerous as funding merchandise, and definitely not appropriate for retail buyers,” stated Mr Tharman, who famous that MAS had issued quite a few shopper advisories to warn the general public of the dangers of buying and selling these merchandise.
Securities tokens, that are digital representations of conventional securities reminiscent of shares and bonds, are one other widespread kind of crypto property.
Mr Tharman stated the scale of the securities tokens market can be small in Singapore.
Solely three of the greater than 60 recognised market operators at the moment regulated by MAS underneath the Securities and Futures Act supply the buying and selling of securities tokens. Buying and selling volumes are very small.
Recognised market operators are additionally not allowed to supply their merchandise to retail buyers.
MAS has taken steps on three fronts to handle the cash laundering and terrorism financing dangers associated to cryptocurrencies.
Firstly, digital fee token service suppliers have to be licensed.
These suppliers are entities concerned in offering cryptocurrency-related companies. They have to adjust to Anti-Cash Laundering/Combating the Financing of Terrorism necessities, reminiscent of obligations to carry out buyer due diligence and transaction monitoring.
Secondly, MAS has stepped up surveillance of the cryptocurrency sector to determine suspicious networks and higher-risk actions for additional supervisory scrutiny.
Lastly, MAS is elevating public consciousness on the dangers of investing in digital fee tokens. MAS will work with the Business Affairs Division to proceed to lift public consciousness on the dangers, stated Mr Tharman.
He famous that the crypto asset area is consistently evolving, however stated MAS has been “carefully monitoring developments and can proceed to adapt its guidelines as wanted to make sure that regulation stays efficient and commensurate with the dangers posed”.
“Buyers, on their half, ought to train excessive warning when buying and selling cryptocurrencies,” he added.
MEASURES TAKEN BY MAS
• Digital fee token service suppliers have to be licensed.
• MAS has stepped up surveillance of the cryptocurrency sector to determine suspicious networks and higher-risk actions for additional supervisory scrutiny
• MAS is elevating public consciousness on the dangers of investing in digital fee tokens