Singapore tells crypto operators: act like grown up financial institutions

Singapore has joined the ranks of nations requiring digital payment operators to follow the same sort of regulations and customer protection requirements that apply to conventional financial institutions. In measures floated in October 2022 and to be enacted by the end of 2023, Singapore's Monetary Authority (MAS) will require …

[A Non e-mouse]

Paul Chan declared blockchain technology underpinning Web3 features has the "potential to solve many difficulties and pain points encountered in finance, trade, business operations and even day-to-day life.

The blockchain snake-oil business is clearly still very strong in Hong Kong.

[tony72]

"The move cements Singapore's distrust of digital assets."

Does it now? Since they're simply making crypto companies obey the same rules as regular financial institutions, does that mean the rules also indicate "distrust" of regular finance?

Seems to me that implementing sensible and strict crypto regulations is actually essential for the industry to thrive, so I don't see it as indicative of distrust, it's just a recognition that the industry badly needs such regulation.

[Anonymous Coward]

Regulation is not enough, it also needs competent and active enforcement - I've seen in Malta what happens when that isn't the case.

That said, draconian as I find it, quite a few financial executives could do with the threat of being physically whipped if they misbehave instead of getting a bailout by the taxpayer and then still receiving a bonus. I think it would clean up the industry considerably.

[Jedit]

"does that mean the rules also indicate "distrust" of regular finance?"

Simply put: yes. Financial systems cannot operate on trust alone. If you want to offer services involving other people's money, then you need to be accountable - excuse pun - if something happens to that money.

[martinusher]

Re: "does that mean the rules also indicate "distrust" of regular finance?"

Every time we 'trust' we get screwed. Humans are both greedy and really good at rationalizing their behavior. Crypto has been a Wild West of unregulated securities -- they're like Exchange Traded Funds but based entirely on wishful thinking -- so its not been surprising that crypto has been extremely volatile and rife with fraud. It should be regulated like any other security.

(BTW -- Singapore is one of the jurisdictions where I really wouldn't want to try to test how well their regulations are enforced.)

[tmTM]

Re: Strict crypto regulations is actually essential for the industry to thrive

The Crypto industry has only grown so big because it's completely unregulated.

With regulation in place, everyone will realise what a sham so many of these coins and companies are.

[Filippo]

>blockchain technology underpinning Web3 features has the "potential to solve many difficulties and pain points encountered in finance, trade, business operations and even day-to-day life."

"Many difficulties and pain points", and yet not even one of them is explicitly pointed out.

[Pascal Monett]

Why the tip-toe ?

Just make them sign a banking charter. Job done.

They want to deal in finance ? They obey the rules of finance.

[SnailFerrous]

Act like gown up financial institutions

Translated as:

Where a suit, not a hoodie when fleecing your customers.

[Howard Sway]

This will mitigate the risk of loss or misuse of customers' assets

Yes, and they will also soon be announcing strict rules for the regulation of ponzi schemes, so that all their useful aspects can be retained without any risk of loss to investors.