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Singapore’s Deputy Prime Minister Warns About Crypto

Hang Swee Keat, Singapore’s deputy prime minister, has reportedly told the retail investors to keep away from the crypto market and primarily the cryptocurrencies. He stated cryptocurrencies to be highly risky and further noted that they cannot express this enough. On Tuesday, the deputy prime minister spoke at the Asia Tech x Singapore (ATxSG) summit and warned the retail investors against cryptocurrencies. 

In support of his statement, he brought up the case of one of the most successful cryptocurrencies that plunged to $0, i.e., LUNA. He also gave the example of the stablecoin terrausd (UST), saying that numerous investors lost vast amounts of money due to the crash of these two cryptocurrencies. However, after the warning, he told the summit of an excellent and stable alternative. He suggested that digital dollars have the potential to transform finance throughout the world. 

Moreover, Keat also emphasized the importance of crypto regulations. He stated: 

We must continue to adapt our rules to ensure that regulation remains facilitative of innovation, and yet addresses the key risks that crypto assets pose.”

Consequently, Singapore has stringent rules regarding the crypto industry. The Monetary Authority of Singapore (MAS) is the country’s central bank and the primary regulator of the crypto sector. The strict regulations have made it difficult for the companies to operate a crypto exchange. Numerous companies have applied to acquire a license from the MAS, but more than 100 companies did not meet the regulatory requirements. 

It is no wonder that during the past two years, the MAS has only given approvals and licenses to only 11 digital token service providers. That is because MAS adopts an intricate process of approval based on a thorough evaluation to ensure safe adoption within the financial sector. Moreover, the deputy prime minister stressed that the stringent licensing process is for the country to become a responsible global crypto hub. Furthermore, he stated that the country needs innovative players in the field, but more importantly, they must have robust risk management capacity. 

Though crypto is not illegal or unregulated, the country still took preventive measures to avoid risks. For example, in January this year, all the cryptocurrency ATMs were closed down across the country. Similarly, restrictions on all crypto ads were imposed earlier this year. All that happened following the MAS announcement, and the deputy prime minister has stressed that cryptocurrencies are not suitable for the general public. 

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