The South Korean financial regulator is seeking to Singapore for inspiration since the nation formulates new policies on the cryptocurrency sector. This proceed by the Korean FSC sparked speculation that they may adopt a similar system.
South Korea is taking a Singapore-design approach to establishing Cryptocurrency Regulation
Singapore is famous for being among the most innovative approaches to crypto regulation on earth and its cryptocurrency exchanges are regulated by the central bank and financial regulator. main body, the Monetary Authority of Singapore (MAS).
Some of the top foreign exchanges are headquartered in Singapore, where MAS started requiring anti-money laundering (AML) and counter-terrorism funding (CFT) protocols for trading platforms in 2018. Exchanges are also obligated to obtain operating licenses, report suspicious transactions, and maintain their own funds independent from client funds.
Many of these provisions will likely be introduced in September this season when Korean exchanges will come under the regulation of the Financial Services Commission (FSC). But after years of confusion over where precisely the coin ceases with policymaking from the crypto space, the FSC was recently given almost complete control over the business.
Therefore, the FSC has been attempting to locate suitable ideas in this area in recent weeks. As part of this preliminary work, the FSC convened the nation’s top exchanges three times to get face-to-face discussions and briefings. And today, the regulator could be set to standardize the MAS because it seems set to refine its operations before September.
Per Newsis, a “key official in the financial sector” who spoke on condition of anonymity, stated that the FSC is “reviewing Singapore’s cryptocurrency exchange licensing model.” But the writer of the report added , as a MAS-style system could be adopted, the tokens themselves could also be subject to regulatory scrutiny — significance “80-90% of cryptocurrencies cryptocurrency” would have to be delisted, possibly leaving only market leaders such as bitcoin (BTC) and ethereum (ETH) on the “green list.”
The media state that the FSC remains undecided on the subject, together with the ruler commenting that Singapore’s version is “just one of them” that is now “under consideration” and it ” may or may not be applicable. “
Even so, the instance of MAS is thought to be among those who are being closely monitored. And readers might remember that the only key bank in Asia to have established a crypto market up to now, DBS, has done so with MAS approval. On the flip side, the MAS past month cautioned that cryptocurrency investing might not be acceptable for retail investors.
Monetary Authority of Singapore (MAS) warns: Cryptocurrencies are’High Risk’ and’Unsuitable for Retail Investors’
Singapore has cautioned the public about the dangers of trading cryptocurrencies. Tharman Shanmugaratnam, Chairman of the Monetary Authority of Singapore, in response to a parliamentary question in April stated:
“Cryptocurrencies can be volatile, as their value is often unrelated to any economic fundamentals.”
“Therefore, they’re insecure as an investment product and are definitely not acceptable for retail investors.
A senior executive at South Korea’s top 10 cryptocurrency market by trading volume stated that there’s room for a few cautious positivity. The official requested anonymity and maintained the identity of the trade confidential, but additional:
He added that crypto funds aren’t permitted to be marketed to retail investors.
Tharman, senior ministry and co-ordinating minister for social policies, said the MAS has the ability to impose additional measures on electronic asset providers, whereby cryptocurrency exchanges electronic equipment are corrected, if needed.
At the start of this past year, Singapore enacted a new payments legislation, the Payment Services Act, allowing global crypto organizations to expand their operations in the nation by submitting an application for an operating permit.
The MAS Chairman’s remarks come as the complete crypto market cap surges beyond the $2 trillion mark amid increasing prices while BTC proceeds to trade around $58,500. Although cryptocurrency trading in the country has improved significantly over the last year, it’s still small in comparison to traditional markets.
Tharman stated the joint peak daily trading quantity of Bitcoin, Ether, and XRP accounted for only 2% of the average daily inventory trading volume on the primary stock exchange this past year.
Amid this all, authorities have stepped up efforts to fight money laundering and terrorist financing risks associated with crypto assets, ” he said. In similar news, Singapore-established cryptocurrency exchange Torque has shut down after at least 70 police reports against it as investors claimed to have lost millions of dollars in crypto. .
In this respect, the MAS is raising awareness of the dangers of investing in cryptocurrencies and has improved its monitoring of the business to identify questionable networks and higher risk activities that might need to be tracked. more closely, Tharman said.
“The crypto asset space is constantly evolving.”
“MAS has been closely monitoring developments and will continue to adjust its rules as necessary to ensure that it remains in effect and commensurate with the risks posed. For their part, investors should exercise extreme caution when trading cryptocurrencies.”
“Singapore is a significant crypto market, so that gives us some type of hope. On the flip side, the FSC is uncommitted and hasn’t specified which facet of the MAS regulations it’s studying or wishes to apply. It’s too early for doom and gloom, but it’s also too early to observe anything.”
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