Singapore’s Single Regulatory System: A Centralized Hub For Crypto And Traditional Finance
Singapore has become known for its progressive take on the regulation of financial activities, both traditional and cryptographic. And now, the Monetary Authority of Singapore (MAS) is hoping to further centralize the regulation process through the adoption of a single, unified system for both.
A New Regulatory Horizon
A recent announcement by the MAS made it clear that it hoped to streamline the regulatory landscape by implementing a single set of regulations for both “crypto-assets” and traditional finance:
- All entities and activities will now be subject to the same regulatory framework, eliminating the need for duplicative oversight.
- The MAS will also strengthen its enforcement and regulatory powers.
- Individuals and entities conducting activities that are seen as a risk to customers or a threat to the regulated system will be subject to more stringent control.
The regulator’s announcement came with a lighthearted touch, however, using a witty approach:
“In the old days, financial activities used to take place in a library. Now they take place on the internet. And, just like how librarians are able to police what books are in the library and who can read them, regulators must be able to do the same on the internet.”
A Positive Outlook
The regulator has adopted a “forward-thinking” approach to these regulations, which is a welcome sign for many members of the crypto community. Rather than treating the crypto space as something completely separate from traditional finance, the MAS is taking the “One System” approach.
This system should help ensure that all participants in the digital asset space are held to the same standards, providing a level of consumer protection and trust. It is a promising step towards the establishment of a more open and equitable market.
The Final Word
With the MAS’s commitment to a single regulatory system, Singapore has become a world leader in progressive financial regulation. By providing unified regulation across both crypto and traditional finance, the MAS is sending a clear message: crypto is here to stay.
