The reason why Singapore will not ban cryptocurrencies

It has been confirmed that Singapore will not ban cryptocurrencies. After witnessing Indonesia and China move towards curbing cryptocurrencies for the many ills that have been pointed their way, members of parliament sought clarity in a recent parliament sitting on the governments stand on cryptocurrencies.

Mr. Saktiandi Supaat, MP, Bishan, addressing the minister in charge of MAS, asked what the minister’s stand was on cryptocurrencies considering they were banned in China and soon to be banned in South Korea. He also sought to know how the ministry planned to combat use of cryptocurrencies to escape taxation and money laundry.

In response, the minister, Mr Tharman Shanmugaratnam, who is the Deputy Prime Minister and Minister in charge of MAS said:

“The Monetary Authority of Singapore (MAS) has been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here. But we will be subjecting those involved as intermediaries to our anti-money laundering regulations. And we will keep highlighting to Singaporeans that they could lose their shirts when they invest money in cryptocurrencies.”

Mr Lim Biow Chuan, MP, Mountbatten asked what measures the government was taking to protect consumers against making losses from investing in unregulated currency.

In response to this the minister said;

“The priority is to help people be aware of the risks of putting their money in cryptocurrencies. Cryptocurrencies such as bitcoins are a very high-risk investment, subject to sharp swings in prices driven by speculation. They are also mainly traded on opaque markets, with no regulatory protection for investors.”

By doing this, Singapore follows the path taken by Japan by acting as a permissive environment for both cryptocurrency and Blockchain innovation.

Through these responses, it’s easy to see why Singapore will not ban cryptocurrencies.

The minister’s comments come after Ravi Menon, MAS managing director issued a statement to the public that indicated his excitement and belief in the future of cryptocurrencies by saying he hoped crypto assets and their underlying technology would survive a major crash.

Hit the comment section and let us know what you think of this move by the Singapore government? Do you believe governments that are considering banning cryptocurrencies are wrong for contemplating such a move???

Basil Kimathi

Basil is a Bitcoin and blockchain evangelist with several years of writing in the tech and finance industries. Having several years of freelance experience with leading cryptocurrency and tech related sites in past, he believes strongly in the revolutionary power of the blockchain technology. You can get in touch with Basil via twitter @basil_kimathi

2 thoughts on “The reason why Singapore will not ban cryptocurrencies

  • February 7, 2018 at 3:31 am
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    The Singaporean habit of highly profiting from their competitors stupidity is at it again.

    They know very well they will reap squillions of fiat by this move.

    China and others are setting themselves up for crypto-destitution.

    Go Singapore !

    Reply
    • February 7, 2018 at 7:26 am
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      Very true TheOneLaw, It’s a smart move and they will reap big, Go Singapore Go!

      Reply

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