Crypto Regulation in Singapore

I’m sure you will agree with me that the most exciting thing about crypto is that no one exactly holds a crystal ball over its future. The past doesn’t serve as a reference as a sudden move by a well-known individual (read: Elon Musk) can cause a huge dip in the price of BTC. Surely, it pays homage to our primitive caveman ancestry - the hunt, the adrenaline pumping through our veins, the reliance on our guts, even the element of luck. It’s all very addictive!

This is when we must be mindful and not give ourselves entirely to the invigorating highs and lows. For better or for worse, no man is an island, so I must not only consider my financial situation, but also do some research on the broader economic environment in my country. Before I devote a greater portion of my portfolio to crypto, I need to first examine the extent to which this environment in Singapore produces a conducive environment for crypto.  

Here, I don’t have to look far, because the Monetary Authority of Singapore (MAS) cautioned that ordinary retail investors like you and me need to be mindful of the high risks of crypto investing. Some of my fellow men might be deterred from venturing into crypto as a result, given that this cautionary note was released in the national press.

Despite the official word of caution, Singapore seems a rather crypto-friendly country. Its receptivity towards these digital assets can perhaps be best illustrated in how one of the major banks in Singapore, DBS Bank announced last December that it intends to set up a DBS Digital Exchange that will empower institutional investors and accredited investors to engage in a trading and custody ecosystem for digital assets. This initiative is even backed by our local stock exchange as Singapore Exchange will take a 10% stake in the DBS Digital Exchange.

Such institutional initiatives underscore the importance of staying invested in the crypto market!

At the same time, crypto has fostered entrepreneurship among Gen Z youths. Hodlnaut is a cryptolending platform founded by 2 Singaporeans. It has already received validation from Singapore Fintech Association, which is recognized by MAS. Not resting on its laurels, it is in the midst of applying for a license under the Major Payment Institution license with the MAS. 

We also have a local crypto exchange called Tokenize Exchange that has been already been around since 2018. It not only supports established cryptocurrencies, but also lends presence to emerging ones by making available a multitude of crypto-crypto pairings. More importantly, from a security point of view, it partners custodian leader Bitgo so that users could have rest of mind when using these multi-signature cold wallets. 

Your socioeconomic environment should be different from mine, but I hope you get some insights from this article on how to get started with doing your due diligence:

1) Any press releases from the official monetary authority in your country? What is their stance taken on crypto?

2) Any influential banks or other financial institutions branching out into offering crypto solutions for their clients?

3) Any enterprising start-ups that wish to ride on this crypto trend and even dare to offer something uniquely different from its established competitors?

Hope this jogs your thinking process! Please let me know if you consider any other factors while making crypto decisions. 

This post first appeared on my personal blog here.

Photo by Alesia Kozik from Pexels

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