There’s no denying the fact that Singapore has become the Cryptocurrency hub in Asia. Let’s first understand what Cryptocurrencies are? So, Cryptocurrencies are digital currencies that provide the benefit of phenomenally strong protection. It is like your digital or virtual money. Even though cryptocurrencies are considered secure, they have some disadvantages too. Complete knowledge of cryptocurrencies is required before coming to the conclusion.
Digital currency is gaining momentum and Singapore is now emerging as a prominent hub in Asia. It is welcoming technologies like cryptocurrencies as well as blockchain. The government of Singapore has supported this notion through its desire to experiment, with MAS i.e. Monetary Authority of Singapore in order to explore the use of distributed ledger technology.
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If we see this from a regulatory perspective then, Singapore has indeed taken a dynamic approach to cryptocurrencies simply by introducing the PS ACT – Payment Services Act 2019. The primary purpose of this act is to regulate and monitor the intermediaries that are dealing with cryptocurrencies and focus on consumer protection as well as anti-money laundering.
Singapore’s status as a leading hub of cryptocurrency and blockchain in Asia has certainly allowed us to enforce Singapore law as the prominent governing law pertaining to contracts involving cryptocurrencies.
The advantages of Singapore law includes –
- It is neutral.
- There is a well-developed body of law.
- Making use of Singapore’s law has advantages that are cryptocurrency-specific.
- The first and foremost case law that is related to cryptocurrencies is rapidly developing and evolving. In the first case related to cryptocurrencies, the Singapore International Commercial Court has made it clear that cryptocurrencies can be treated as intangible property.
- Another advantage could be that cryptocurrencies are considered legal as per the law of Singapore.
Apart from the advantages, there are some disadvantages too, like –
- There are some uncertainties that surround cryptocurrency and blockchain.
- Since the prices of cryptocurrencies are volatile, they have forced the MAS to consistently warn the public that cryptocurrencies are risky, they are not regulated and therefore, in this regard, the investors are not protected.
- Consumer protection is therefore becoming an issue.
- In recent times, Cryptocurrencies are clearly becoming more and more complicated and complex.
To offer concluding remarks, Singapore is now emerging as the leading hub of digital currency – cryptocurrencies and blockchain in Asia.
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