President-Elect Tharman Shanmugaratnam’s Stance on Cryptocurrency
Tharman Shanmugaratnam, Singapore’s newly elected president, has an extensive background in government and finance. As the former deputy prime minister, finance minister, education minister, and chairman of the Monetary Authority of Singapore (MAS), he brings a wealth of experience to the table.
One Regulatory System for Crypto and Traditional Finance
Prior to his election, President-Elect Shanmugaratnam expressed his views on cryptocurrency and its regulation. He firmly believes that both crypto and traditional finance should operate under the same regulatory system. This means that if crypto wants to engage in activities similar to traditional finance, they should be subject to the same regulations regarding capital, liquidity, and reserve backing.
Furthermore, Shanmugaratnam emphasized the importance of clarity. He stated that there should be no ambiguity when it comes to regulations. If you choose to operate outside of the regulatory system, you do so at your own risk. This approach ensures that individuals are fully aware of the potential risks associated with unregulated activities.
Regulating Crypto for Financial Stability
While advocating for a unified regulatory system, President-Elect Shanmugaratnam acknowledged the need to regulate specific segments of the crypto market, such as stablecoins. He believes that all financial activities, whether in crypto or traditional finance, should be regulated to prevent money laundering.
However, despite his support for regulation, Shanmugaratnam expressed skepticism towards investing in cryptocurrencies. During a panel discussion at the World Economic Forum, he questioned whether regulating crypto the same way as banks and insurance companies would legitimize something inherently speculative and risky. He leaned towards the view of providing ultra clarity to individuals about the potential risks associated with unregulated markets.
Educating Consumers and Promoting Clarity
President-Elect Shanmugaratnam emphasized the importance of educating consumers about the risks involved in crypto investments. He believes in the “ultra clarity” approach, which involves making it abundantly clear that investing in crypto comes with substantial risks. He discourages individuals from taking such risks, considering them to be foolish.
Hot Take: Striking a Balance
President-Elect Shanmugaratnam’s perspective on cryptocurrency regulation highlights the need for a unified and transparent regulatory framework. While advocating for regulation to prevent money laundering and ensure financial stability, he also recognizes the speculative nature of cryptocurrencies. Striking a balance between regulation and individual responsibility is crucial in protecting consumers and maintaining the integrity of the financial system.
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