Singapore Will Constrain Harmful Crypto Behavior
According to the Chief Financial Officer of the Singapore Monetary Authority, the Central Bank of Singapore will be fierce and relentlessly tough on bad behavior in the crypto industry. Sopnendu Mohanty said Singapore went through a painfully slow and highly draconian process of due diligence; To license crypto businesses to protect the broader economy.
In April, Three Arrows Capital said it had suffered huge losses due to the recent downturn in the market. The company said it would reduce Singapore to Dubai as the regulatory environment deteriorates. Earlier, Binance closed its Singapore unit. They also refused to apply for a license; After MAS said it would stop all crypto transfers.
The comments came after the terraUSD stablecoin collapsed markets in May; which are already falling from November figures due to declining macroeconomic conditions. Still, that did not stop some cryptocurrencies from staying on track. The country has recently granted principal digital token payment licenses to Crypto.com on the crypto exchange and two other companies.
After a period of uncertainty followed by the cryptocurrency market crash, Digital assets seem to be on the way to recovery. The central bank of the United Kingdom likened the crash to a dot-com bubble burst. In particular, the Deputy Governor of the Bank of England said that survivors of the crypto market crash could become future technology companies, For example, after the collapse of Amazon and eBay dot-com.
Experts estimate that no matter what happens to crypto-assets over the next few months, crypto technology and finance are expected to continue because it has enormous efficiency and the potential for changes in the market structure.
Meanwhile, the report says the UK banking authority is exploring the possibility of developing its own retail central bank digital currency. It also plans to produce a consultation document by the end of 2022.
It is worth noting that a week earlier, the BoE governor had criticized the cryptocurrency, called having without intrinsic value and addressed a committee of the British Parliament. He mentioned his thoughts on the recent crash of the crypto market. In December, Cunliffe warned that the rapid growth of cryptocurrency could pose a severe threat to the established financial system. Also stressed that most of the risk arose from market volatility; Recognized that significant assets like Bitcoin are becoming home.