Singapore not Planning to Regulate Cryptocurrencies

Ravi Menon, the Monetary Authority of Singapore Managing Director, has stated that Singapore has no plans to regulate cryptocurrencies. Still, Menon said that while he does not think the regulation of cryptocurrencies themselves is necessary, close attention needs to be paid on possible illicit activities such as money laundering or funding of terrorist groups facilitated by cryptocurrency technology.

Singapore already has controls in place for various activities surrounding cryptocurrency, for example requiring virtual currency intermediaries to adhere to rules preventing illicit financial activity. Menon stressed that digital tokens need to be analyzed on a case to case basis - he mentioned, for example, that some cryptocurrencies share many traits with securities and therefore should be treated as such by Singapore's Securities and Futures Act.

While the country is currently employing measures to prevent the abuse of cryptocurrency technology for illicit goals, Singapore's leadership does not have a negative stance towards the technology itself: “Our attitude is let’s keep an open mind on it,” Menon said. “I think that’s one of the areas where there’s been excessive hype because people see it merely as an investment vehicle that’s going to rise in value and I think that’s a rather misguided approach towards the use of cryptocurrencies.”