Speaking at the annual FinTech Junction conference this Thursday, a senior executive at the Monetary Authority of Singapore (MAS) said that regulators should look at the risks posed by cryptocurrencies when trying to regulate them.
Damien Peng, deputy chief fintech officer at the MAS, said that many regulators and industry figures are calling for regulation in a top-down manner. Instead, Peng said that the MAS was looking at risks that cryptocurrencies pose and how they can be countered via regulations.
“We definitely need to regulate cryptocurrencies,” said Peng “It’s about addressing the right risk. For example, people using cryptocurrency for terrorism financing is something that poses a big risk and it’s something that we need to deal with.”
“So the question is not whether cryptocurrencies should be regulated. It’s about what risks does [blockchain] technology pose and how can we attempt to mitigate those risks without throwing the whole cryptocurrency industry down the sink.”
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Capital.com CEO: crypto industry needs to grow up
Also speaking at Thursday’s event in Tel Aviv was the CEO of Capital.com, Ivan Gowan. The retail broker executive said that cryptocurrency regulations should be – and are very likely to be – focused on custodial services.
Noting that the QuadrigaCX has been extremely bad for the industry, he said such incidents point to a need for more regulatory measures.
“One area that needs a lot of improvement is the level of due diligence that is put into how client funds are stored and other custodial service providers operating in the industry,” said Gowan.
“There’s a need for people to grow up a bit. We can’t just take customers funds, not do due diligence on them or do whatever we want with them.”