In May this year, it had been reported that the Monetary Authority of Singapore (MAS), which serves as the country’s apex bank for all practical purposes, had proposed changes in regulation to allow for blockchain exchanges to operate within the city-state. Now, it has announced that it is partnering with the Singapore Stock Exchange (SGX) to move forward with a collaboration that involves working with tech giants such as Deloitte, Anquan, and NASDAQ. This partnership is meant to lead to developing solutions that would allow users to carry out exchanges and final settlements of crypto and security assets at the same time. The initiative primarily aims to arrest the level of risk usually associated with the process of settlement. Besides, the project also intends to enhance the efficiency of operations.
Sopnendu Mohanty, who serves as the Chief FinTech Officer of the monetary authority, said that blockchain technology is completely changing the face of the finance industry, revolutionizing financial transactions. He added that the ability to transfer funds conveniently across different blockchain networks will unveil several new avenues and opportunities for businesses to explore. The fact that these leading players from the field of technology are coming on board reveals the level of interest blockchain has generated among commercial players. Mohanty said that he was expecting to see greater levels of growth in this field with Fintech companies making use of the strong human resource pool that the country already has in terms of innovation and expertise. He also expressed the hope that this will create new opportunities for several businesses and startups that they can work on to fuel their expansion.
Singapore has begun rolling out the red carpet for crypto and blockchain of late, and this is particularly conducive for the industry now as China has banned over a hundred crypto exchanges from abroad and there is a void in the industry at present. In addition, the fact that it has always had a positive attitude towards the industry gives crypto enthusiasts in Singapore further reassurance. In February 2018, in fact, the Deputy Prime Minister of the country, Tharman Shanmugaratnam said that the MAS has spent a lot of time in evaluating how risky the blockchain industry might be and the threats they can potentially pose. Their findings have led the Government to believe there is no reason to ban crypto trading in Singapore now. The very fact that the apex bank of Singapore is taking such a step makes it clear that the state is not considering a withdrawal of the favour it has been bestowing on the crypto industry all this while.