Balancing fintech innovation and regulation in the crypto space
SINGAPORE: With more than US$2 trillion in market value and an estimated 200 million users around the world, cryptocurrencies have come under the regulatory spotlight as they gain traction among investors.In Singapore, digital payment tokens have been issued to three entities, and more could be on the way.Digital payment token service includes the buying or selling of digital payment tokens, or providing a platform to allow people to exchange such tokens in Singapore.With the industry still evolving, experts say there are certain challenges, including how regulations are set for something that is decentralised by design.According to digital currency exchanges such as Luno, banning crypto outright would mean shutting the door on the underlying blockchain technology and its benefits. “Technology in itself is not good or bad ...
The important thing is to have regulation that pretty much legalises the framework and can eliminate the bad actors and does not allow them to operate, which is what you see the likes of Singapore doing,” said Mr Vijay Ayyar, Luno’s vice-president for Asia Pacific and Global Expansion.Outright bans could also push investors to look for alternative options."More people will just find ways to still put their money into cryptocurrency ...
Instead of fostering growth, facilitating growth, you will only push people to go towards circumvention of the rules," said Mr Airell Ang, legal associate at Magna Law Corporation.Mr Ang said that a flexible approach allows for both industry players and regulators to grow and learn and facilitate the growth of this "exciting industry"."Take a look at the United States’ hardline stance against cryptocurrency, where they view it as a form of security and the application
