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The Monetary Authority of Singapore (MAS), implementing a policy of a phased ban on retail trade in cryptocurrencies, warned that it is not able to track transactions from foreign exchanges.
Minister Tharman Shanmugaratnam, who oversees the activities of MAS, said that the Central Bank cannot determine how much cryptocurrency is placed on the wallets of the population of Singapore. He explained that citizens often buy cryptocurrencies on foreign exchanges that are not registered with MAS.
According to him, the Central Bank has the opportunity to track the statistics of the withdrawal of digital assets by Citizens of Singapore only from licensed exchanges. Shanmugaratnam expressed concern that the information that comes from local cryptocurrency service providers is not enough to protect investors.
In addition, MAS does not recommend investing money in crypto assets, as they are highly volatile, often used for fraudulent purposes and have no fundamental value. However, the desire to keep up with the global market and at the same time maintain control over the crypto industry forces Singapore to adhere to a flexible policy regarding cryptocurrencies.
So, last month, the head of MAS Ravi Menon (Ravi Menon) said that the situation on the market forces the authorities to tighten the regulation of cryptocurrencies and support the development of the blockchain. In August, MAS began to prepare new cryptocurrency rules aimed at solving the problem of liquidity crisis and withdrawal of funds.
Back in July, the regulator, against the background of the default of crypto companies, some of which worked under the jurisdiction of this city-state, announced that it was going to expand the rules of cryptocurrency regulation.
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