The managing director of MAS (Monetary Institute of Singapore) Ravi Menon is fully supporting the call for local Crypto start-ups and exchanges to be granted access to banking services.
Bringing Together The Crypto And Banking Sector
The head of Singapore’s central bank, the MAS (Monetary Institute of Singapore), has requested the banking industry in the country to stop limiting and inhibiting the provision of financial services to crypto-based businesses and exchanges in a bid to promote the fintech industry.
While addressing Bloomberg, the central bank chief stated that although Singapore is not going to be a jurisdiction with lax regulations when it comes to the Crypto industry within the country and beyond, it is looking to offer relief to some Crypto start-ups who have had difficulties in receiving even basic financial services from banks such as opening accounts.
Menon in his statements said that as a regulator the central bank is looking to unite both industries that are bringing together the banking sector and the Crypto sector and foster an understanding between the two.
No Need For Regulating Decentralized Open Cryptocurrencies
The move by Singapore to try and embrace the Crypto sector, albeit with some caution, is in contrast to how India has dealt with the new industry. The central bank of India which is the RBI (Reserve Bank of India) has in no uncertain terms ordered all financial institutions and financial services providers to cease offering such services to Crypto based businesses and exchanges.
This restrictive stance taken by the RBI has caused the Crypto industry in the country to collapse with many crypto-based businesses closing down shop and others moving to different jurisdictions.
As a senior figure in the financial industry in Singapore, Menon has been outspoken about his outlook on decentralized Cryptocurrencies saying that there was no need of regulating them. Menon has said that open Cryptocurrencies like Bitcoin are not as risky as to warrant drafting of regulations specifically for them.
Influx Of Crypto-based Businesses To Singapore
Menon stated in 2017 that the route the central bank is willing to take when it comes to Cryptocurrencies is to monitor the activities around them then decide on the regulations suitable for such activities upon assessment. In this way, Menon called for the monitoring of activities which have the potential of abusing Cryptocurrencies instead of calling for the regulation of Cryptocurrencies as assets.
With the Crypto sector experiencing an exponential growth through much of 2017 through to early this year, Menon called for attention to be focused on the positive applications of Cryptocurrencies such as making international remittance cheaper as well as faster i.e. real-time. He added earlier this year that he hoped once the fever being experienced in the Crypto sector has cooled down and the crash has happened the meaning technology that has come with Cryptocurrencies and Blockchain will not be undermined.
With an embracive ecosystem, Singapore has seen more Crypto based businesses and exchanges set up shop in the jurisdiction with the latest being Upbit which is the largest Crypto exchange in South Korea.