• The Monetary Authority of Singapore’s Chairman Tharman Shanmugaratnam questioned if regulating the crypto industry would give credibility to speculation.
• Shanmugaratnam argued that lawmakers could steer clear from the crypto sphere and make it clear that the whole space is unregulated.
• He also acknowledged that this is only possible if crypto companies don’t offer services typical to traditional finance institutions.
The Monetary Authority of Singapore (MAS) recently held a discussion at the WEF23, wherein Chairman Tharman Shanmugaratnam raised a controversial take on crypto regulations and questioned if regulating crypto could legitimize speculation.
Shanmugaratnam noted that while crypto regulations need to be in place to combat money laundering, it may be better to leave the industry unregulated if crypto companies do not offer services typical to traditional finance institutions. He argued that by doing so, lawmakers could make it really clear that the whole space is unregulated and investors have to invest on their own risk.
However, Shanmugaratnam also acknowledged that this may only be possible if crypto companies don’t offer services similar to those of traditional finance institutions. He said that if crypto companies would like to do things that traditional finance is doing, they should be subject to the same regulations.
The MAS chairman further noted that crypto regulation is still in its infancy and that it is important that the regulations are thought through carefully and not rushed into. He concluded by saying that the crypto industry needs to be given time to develop before any regulations are implemented.
Overall, the discussion at the WEF23 revealed that even though crypto regulations are necessary, it is important to consider the implications of regulating the industry. While it could provide investors with more security, it could also make the industry more attractive to speculators, which could have unintended consequences.