- The Blockchain Association of Singapore has come out in opposition to the central bank's planned laws about crypto currencies.
- The Monetary Authority of Singapore strongly indicated a variety of policies that would restrict access to crypto currency for retail customers.
- In its 11-page comments, the association acknowledged that it agreed with several parts, despite describing the idea as "overly restrictive."
The most influential crypto currency lobbying organization in Singapore has voiced its opposition to the measures made by the central bank regarding crypto currencies, describing them as "overly restrictive."
The Monetary Authority of Singapore recently recommended various policies restricting access to crypto currency for retail customers. Because of these restrictions, investors will no longer be able to borrow money to fund their purchases of tokens. They would also make it illegal for companies to lend their coins or stake them to create yields.
In response to the notice, the Blockchain Association of Singapore published (1) an 11-page reply in which they voiced their opposition to the proposed prohibition. They cautioned that such restrictions would only force those interested in looking for alternatives that were not regulated and located overseas.
What is the Association Saying?
The group opposed the MAS's proposal to outlaw lending tokens to accrue interest income. According to the organization, this is one of the most important benefits of investing in digital payment tokens. The text revealed divergent opinions in other areas, such as the provision of retail incentives.
The association found areas where it agreed with the monetary authority, which is important to note, given that the text was not entirely negative. The group agreed that it should be impossible for customers to take out loans to finance crypto currency investments.
They also agreed that enterprises dealing in crypto currencies should clearly distinguish between their own company's assets and those of their customers.
The chairman of the organization's board of directors, Chia Hock Lai, stated that he planned to pursue "a more measured and targeted approach, without the requisite regulatory approvals." This would require more engaged and proactive participation on the association's side.
For example, increasing the time spent teaching customers about the dangers of conducting business with unregulated organizations. Lai also mentioned ramping up the number of enforcement actions against people participating in regulated activities.
Why is Singapore so Skeptical of Crypto?
Despite its well-earned reputation for being a financially open country, Singapore has every right to be more cautious about crypto currencies. The city served as the headquarters for several top crypto currency companies, including Three Arrows Capital, which went bankrupt the previous year.
Even more recently, the state investment fund of Singapore declared a loss (2) on its $275 million investment in FTX and wiped it off.
However, this does not imply that the city is not interested in financial advances based on blockchain technology.
A trial run of international decentralized financial settlements was conducted by the Malaysian Monetary Authority (MAS) in collaboration with investment bank JPMorgan.