In a speech at the opening of the Point Zero Forum on 22 June 2022, Heng Swee Keat, Singapore’s Deputy Prime Minister and Coordinating Minister for Economic Policies, said that the country is keen to work with “responsible” blockchain and digital asset players for the growth of Singapore’s crypto ecosystem. The recent comments from Swee Keat have boosted optimism among the Asian crypto community which now considers Singapore the top location for crypto innovation in the region.
The Monetary Authority of Singapore, the financial regulatory authority of the city-state, introduced some tough measures recently to eliminate illegal crypto activities in the region. At the same time, MAS has reinforced its commitment to crypto innovation as the island nation has started granting licenses and in-principle approvals to digital asset services providers who are working towards a sustainable cryptocurrency economy.
In the past 24 months, 11 digital payment token service providers received licenses and in-principle approvals in Singapore. The changes in Singapore’s cryptocurrency regulations for the issuances of licenses show that the city-state is focusing more on “quality” than “quantity”.
While the country’s tough stance against “not so responsible” crypto players may decrease the number of license applications in the coming years, it will ensure consistent growth across Singapore’s crypto and blockchain ecosystem, regardless of what’s going on with the prices.
“Many regulators around the world aim to get the balance between consumer protection and enabling responsible financial innovation right. MAS has zero tolerance for bad actors and at the same time educates its officers in Decentralized Finance. This is encouraging,” Daniel Liebau, Chief Investment Officer at Singapore-based Modular Blockchain Fund, told Finance Magnates.
Crypto Adoption
In terms of crypto ownership, Singapore is one of the top locations in the world. According to the Finder Cryptocurrency Adoption Index, 21.9% of people in Singapore own cryptocurrency assets, a figure that gives the city-state 4th rank in the list of the global crypto…
