How Singapore Plans To Bring Order To Its Cryptocurrency Market

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Cryptocurrency Market

Eight digital currency exchanges have been warned by the Monetary Authority of Singapore to avoid providing cryptocurrency trading services for futures contracts and digital currencies that are considered securities without authorization.

The announcement which was made on Thursday also warned ICO issuers to avoid operating in Singapore. The warning highlights the measures that the country is making in order to make sure that it properly regulates the cryptocurrency market. The main goal of such regulations is to make it safer for local investors.

According to the announcement, the exchanges are expected to halt trading for all the digital tokens that are operated as securities are and futures contracts. However, this is only until they gain the necessary approval from MAS. The Singapore watchdog did not disclose the identities of the eight crypto exchanges or the ICO issuer that it warned. MAS also pointed a finger at the ICO issuer for not having the necessary registration.

The issuer has since then halted its activities in order to comply with the Singapore authority. Lee Boon Ngiap, the assistant managing director of capital markets at MAS stated that the number of digital token offerings and cryptocurrency exchanges in the country has been on the rise and that there is no reason to restrict them if they operate within legal grounds.

Mr. Lee Boon Ngiap also warned that stern action would be taken against any ICO issuer, cryptocurrency exchange, or intermediary that violates Singapore?s securities law. The MAS official also warned that there are no safeguards for any members of the public who opt to trade on cryptocurrency exchanges that are not regulated in the country or invest in digital assets that are outside the scope of MAS regulations.

Despite the warnings, Indonesia is not against cryptocurrencies, In fact, it allows cryptocurrency trading but only if the companies that offer those services are registered and follow the provided guidelines. Cryptocurrencies have been quite controversial in Asia, with different countries taking different approaches. For example, China is one of the countries that have been quite cold about digital currencies but other Asian countries such as Singapore have been warming up to the cryptocurrency market and the opportunities it offers.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at news@dippli.com.

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