The governor of Singapore’s central bank said the licensing process for digital asset service providers needs to be strict. This is because we want to be a responsible global crypto hub with innovative players, but also strong risk management capabilities.
The central bank governor raised concerns with retail investors about the risks of investing in crypto assets. Menon noted that cryptocurrencies can be used for money laundering and terrorist financing.
The central bank of Singapore is understood to have approved only a small fraction of the approximately 170 digital asset applicants. More than 100 companies applying for licenses to operate crypto businesses have failed to meet the licensing requirements. The managing director of the Monetary Authority of Singapore (MAS) explained that the central bank has taken a hard line on retail cryptocurrency investments as we are not sure if it is a good idea for retail investors to get involved in cryptocurrencies.
