Singapore’s Monetary Authority (MAS) did not mince its words in describing its stance against crypto firms with questionable policies and practices.
“We have no tolerance for any market bad behaviour. If somebody has done a bad thing, we are brutal and unrelentingly hard,” said MAS chief fintech officer Sopnendu Mohanty in a Financial Times interview.
Mohanty also predicted that the city-state will offer a state-backed alternative within three years, a perceived better alternative to private cryptocurrencies.
“I think the world at large is lost . . . in private currency, which is causing all this market turmoil,” Mohanty added.
The state officer’s comments come after MAS co-launched a centre of excellence to “accelerate financial inclusion in emerging markets.” The centre was established by open source software for financial inclusion Mojaloop, in which Mohanty serves as a board advisor.
The concern for “bad behavior” among crypto firms intensified after the collapse of stablecoin TerraUSD and the troubled relaunch of Luna token. These are digital assets managed by Singapore-based Terraform Labs.
Another crypto exchange Binance exited from Singapore after MAS placed the firm on an investor alert list and said it “may be in breach” of local law. CEO Changpeng Zhao is based in the country.
Binance is also facing a lawsuit in the US for endorsing the safety of TerraUSD despite it being “an unregistered security.”
“We have been called out by many cryptocurrencies for not being friendly, My response has been: friendly for what? Friendly for a real economy or friendly for some unreal economy?” challenged Mohanty.
Nevertheless, the chief fintech officer commented that the centre of excellence with Mojaloop is more to Singapore’s liking, saying it’s “a step forward into the future of financial services.”
Information for this briefing was found via Financial Times and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
