Kinguin WW
  • Tue. Dec 6th, 2022

Singapore Looks Deeper Into DeFi, Launches Crypto Initiative

ByNdasi Tata

May 31, 2022
AliExpress WW

The MAS will reportedly join forces with finance industry players to explore how asset tokenization and the DeFi sector could benefit Singapore.
The top financial regulator of the city-state – the Monetary Authority of Singapore (MAS) – reportedly partnered with the finance industry to introduce “Project Guardian.” The initiative aims to investigate potential use-cases of asset tokenization and decentralized finance (DeFi) and will guide the nation’s efforts to become a cryptocurrency hub.
According to recent coverage by Bloomberg, the first phase of the upcoming project will explore DeFi applications in wholesale funding markets. The effort will be led by Singapore’s largest bank – DBS Bank, the American multinational financial institution – JPMorgan Chase, and the crypto venture Marketnode.
“Project Guardian” will also aim to ensure that the DeFi universe will not harm the country’s financial stability. Speaking on the matter was Sopnendu Mohanty – Chief Fintech Officer at the MAS:
“Through practical experimentation with the financial industry and the broader ecosystem, we seek to sharpen our understanding in this rapidly transforming digital assets ecosystem. The learnings from “Project Guardian” will serve to inform policy markets on the regulatory guardrails that are needed to harness the benefits of DeFi, while mitigating its risks.”
Another vital goal of the collaboration is to stop the drainage of crypto talents and blockchain businesses to other destinations. Nearly two months ago, the digital asset platform Bybit relocated its global headquarters from Singapore to Dubai. Shortly after, the hedge fund manager – Three Arrows Capital – revealed similar intentions.
Like Dubai (which has recently opened its arms to the blockchain sector), Singapore is willing to establish itself as a cryptocurrency center and let the local digital asset ecosystem thrive.
Being a highly developed economy with a tech-savvy population, it comes as no surprise that many Singaporeans are interested in the cryptocurrency market. Last year’s Independent Reserve study estimated that 43% of the locals had entered the ecosystem. Mass awareness of crypto is also at high levels, as 93% of the participants said they knew of bitcoin.
Unsurprisingly, Ravi Menon – the head of the MAS – assured that the regulator has no plans to prohibit the asset class, but instead, it would apply a comprehensive regulatory framework to it.
Earlier this year, Menon raised concerns that wrongdoers could employ crypto in criminal activities. As such, the rules imposed on it should be as “stringent” as possible. According to him, the legislation will not only restrict illicit actions but also reshape Singapore as a global digital asset hub.
Dimitar got interested in cryptocurrencies back in 2018 amid the prolonged bear market. His biggest passion in the field is Bitcoin and he was fascinated with its journey. With a flair for producing high-quality content, he started covering the cryptocurrency space in late 2018. His hobby is football.

ChicMe WW

FacebookTwitter YouTubeTelegram
Sign-up FREE to receive our extended weekly market update and coin analysis report

source

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist. He earned an M.Sc from the University of Nicosia in Cyprus in Blockchain and Digital Currency. He uses a variety of social media channels to promote his ideas and projects , and he's a major proponent of Bitcoin in Africa.

Leave a Reply

Your email address will not be published. Required fields are marked *

Need Help?
Scan the code