Singaporean Central Bank Tightens Crypto Licensing

Singaporean Central Bank Imposes Strict Licensing Process
  • The Monetary Authority of Singapore (MAS), Singapore’s central bank and crypto regulator, imposed a stringent licensing process on crypto service providers.
  • “We want to be a responsible global crypto hub,” said Ravi Menon, the Managing Director of MAS.
  • He pointed out that people can use crypto for money laundering and financing terrorists.

Singapore’s central bank and crypto regulator — Monetary Authority of Singapore (MAS) — said that the process of licensing crypto service providers must be stringent. 

Ravi Menon, the Managing Director of MAS, shared his concerns about the risks of investing in cryptocurrency. Specifically, he spoke to retail investors at the Financial Times Crypto and Digital Asset Summit last Wednesday. He pointed out that crypto can be exploited for money laundering and financing terrorists.

Menon said:

“The licensing process is stringent. And it needs to be because we want to be a responsible global crypto hub with innovative players, but also with strong risk management capabilities.”

December last year, the central bank of Singapore only approved 170 crypto asset applicants. Over 100 companies that applied for a crypto license either received a ‘no’ or pulled out of their applications.

The central bank has used a “tough line” on retail crypto investing because they’re “not sure that’s a good idea for retail investors to be dabbling in cryptocurrencies,” Menon said. He emphasized that “many global regulators share similar concerns about retail exposure to cryptocurrencies.”

Menon elaborated that they check the track record of their applicants first. Should the company have a solid corporate governance structure, it will have a greater approval rate. He also added that applicants must be familiar with money laundering and terrorist financing risks.

W cryptocurrencies do not threaten the financial system, Menon said that money laundering and terrorism financing risks are there.

In related news, MAS issued guidelines to discourage cryptocurrency trading by the general public last January. The guidelines pointed out that “the trading of cryptocurrencies is highly risky and not suitable for the general public”. A few days later, the central bank shut down cryptocurrency ATMs in the country.

disclaimer read more

Crypto News Land ( , also abbreviated as “CNL”, is an independent media entity — we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.

Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.