The chairman of the Monetary Authority Of Singapore (MAS), Tharman Shanmugaratnam, has suggested that there should be a single regulatory system encompassing both traditional and crypto-finance. In addition, he highlighted that investors should be aware that they are taking their own risk and regulators must provide “ultra-clarity” about what an unregulated market is.

‘A Unified Regulatory Framework’

Tharman Shanmugaratnam, Singapore’s Chief minister, who also serves as the head of the country’s central bank, the Monetary Authority Of Singapore (MAS) discussed crypto regulations during a roundtable conversation with other regulators at the World Economic Forum Last week.

Shanmugaratnam has previously served as Singapore’s Deputy Prime Minister and Finance Minister, and he also holds the position of coordinating Minister for Social Policies and adviser to the Prime Minister on Economic Policies.

“One thing is very clear, whether it is crypto or traditional finance, you have to regulate things like money laundering. So that’s very clear,” He started.

“But beyond that, if you have to think about regulating cryptocurrencies in the same way that we regulate banks, insurance companies, etc., for prudential reasons, for financial stability reasons, I think we need to take a step back. and ask the basic philosophical question”Minister. “Does that legitimize something that is inherently purely speculative and, in fact, a little crazy?” He continued:

Or Is it better to just provide extreme clarity about what unregulated markets are and that you can enter at your own risk? The latter is my opinion.

The MAS president went on to clarify that some segments of the crypto market should be regulated, noting stablecoins as a potential area of ​​supervision.

“But starting to get into a regulation game, whether it’s ostrich eggs or cryptocurrency or anything else, it’s going to be a never-ending game and I’m not sure it’s the right path,” He weighed in.

While He stressed that “consumer education” He noted that it is crucial to note:But It’s also important to make it clear that you are taking a risk. I’d rather that approach”.

Minister Shanmugaratnam further detailed: “And then if crypto or blockchain or any part of that ecosystem wanted to do things that traditional finance is doing, the exact same regulations apply to that: capital, liquidity, backing. reserve, exactly the same. regulations.” He concluded:

So People are very clear. There is a single regulatory system that covers everything. And If you aren’t regulated, buyer beware.

What What do you think of the statements from the Chairman of MAS, Tharman Shanmugaratnam? Please let us know your thoughts in the comments section.

kevin helms

Kevin is an Austrian Economics student who discovered Bitcoin in 2011 and since then has become an evangelist. His interests lie in Bitcoin security, open source software, network effects, and the intersection economics and Cryptography.