US and Singapore Put Forward Reasons For Not Banning Cryptocurrencies

Tue, 02/06/2018 - 15:58
  • With other nations taking a hardline approach to cryptocurrencies, some are trying to be more balanced.

Cover image via U.Today

In a time where the banning of cryptocurrencies in one of its major hubs, China, is sending Bitcoin price into a spiral, there is positive news for the digital currency market coming out of Singapore and the US.

Regulators have been torn across the globe as to how to deal with Bitcoin and other cryptocurrencies, with the polarization at its most extreme towards China who recently initiated a statewide firewall on anything to do with cryptocurrencies.

However, despite the news out of China, the likes of Singapore and the US are approaching with a ‘do not harm’ intention towards digital currency and the powerful technology underpinning it.

‘No reason to ban in Singapore’

Singapore has shown a level of understanding towards Bitcoin and the associated field with its deputy prime minister stressing that there is no need to ban the currency from its citizens.

Tharman Shanmugaratnam, who is also in charge of the central banks said on Monday, under much pressure and questioning from other members of Parliament, that under close scrutiny they did not feel there was a strong case to ban cryptocurrencies.

“Cryptocurrencies are an experiment,” the deputy PM explained, stating their numbers had grown internationally and are currently at a nascent stage.

He added it was “too early” to state if cryptocurrencies will succeed. The minister suggested that the “full implications” of cryptocurrencies will take time to understand if they do succeed in society.

Shanmugaratnam added, almost officially:

The Monetary Authority of Singapore (MAS) [Singapore’s central bank] has been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here. But we will be subjecting those involved as intermediaries to our anti-money laundering regulations.

Similar sentiment in the US

Chairman of the US Commodity Futures Trading Commission (CFTC), J. Christopher Giancarlo, has called for a balanced approach to be taken, and that a ‘do not harm approach’ should be headed when it comes to the cryptocurrency market.

'Do no harm' was unquestionably the right approach to the development of the Internet,” Giancarlo explained. Similarly, I believe that 'do no harm' is the right overarching approach for distributed ledger technology. ... With the proper balance of sound policy, regulatory oversight and private sector innovation, new technologies will allow American markets to evolve in responsible ways and continue to grow our economy and increase prosperity.

Under continued scrutiny

There continues to be a huge polarity between regulators as they struggle to find a united front. China’s final blow to Bitcoin will be telling because if it succeeds it could give fuel to fire other nations to follow suit.

However, there are those who are taking a steadfast approach in the other direction who want to see the benefits of the underlying technology.

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