Ever since FTX ImplosionThe Monetary Authority of Singapore (MAS) chief executive officer has called for caution, even as regulatory activity against cryptocurrencies has received a feverish approach.
MAS Chairman Tharman Shanmugaratnam Informed attendees of the panel discussion: There are certain pitfalls associated with throwing a blanket of financial regulation across the cryptocurrency industry, titled “Banks in the Eye of the Storm” at the World Economic Forum (WEF) in Davos.
“If we were to regulate cryptocurrencies in the same way we regulate banks and insurance companies, would that justify something that is inherently and purely speculative and actually a bit crazy?” Shanmugaratnam asked. “Or is it better to provide very clear information to the unregulated market? If you enter, enter at your own risk.”
The MAS chairman admitted that he is leaning towards the option of allowing consumers to decide whether or not to participate in speculative activity in the cryptocurrency space, and expressed support for extending AML (AML) regulation to all areas of the cryptocurrency industry.
Citigroup (NASDAQ: Ha) CEO Jane Fraser revealed to attendees that the negative impact of the FTX debacle has made regulation imperative, but noted that regulators need to operate on a “fix the problem” policy. Did. “We couldn’t agree more that a level playing field in regulation is so important to all parties,” Fraser added.
“It’s not a question of whether it should be regulated. Sure, it should be regulated, but it should be regulated in a coordinated way. We must have international rules,” he said. said François Villeroy de Galleaud, Governor of the Banque de France.
A new wave of regulatory change
Since the demise of FTX, the regulatory approach to the industry has taken a staccato approach. Eager to create solutions for their systems, regulators around the world have issued a set of rules for the virtual asset industry that lacks a unified front.
Introduced by Thai Securities and Exchange Commission new rule Manage the internal activities of domestic digital asset exchanges. Under the new regulations, digital asset companies will: digital wallet A management system with specific plans for wallet key storage and regular security audits.
Hong Kong, Japan and Singapore have also been caught in a whirlwind of regulatory activity since the demise of FTX.
Watch: Law & Order: Regulatory Compliance for Blockchain and Digital Assets
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