The Southeast Asian tiger states think that we all should keep a close eye on crypto currencies, but from different angles, as an evidence by the latest news this week. While Singapore’s supreme financial regulator initially takes care of the regulation of crypto currencies, South Korea confirms its skeptical tenor this week. The central bank of the country doesn’t want to recognize crypto currencies as an official payment.
In the course of the seemingly steadily rising Bitcoin rate and regardless of increasing state regulation, crypto currencies gain daily economic importance, especially in Asia. Most of the capital stock is traded and converted here, which is revealed by the market view.
However, the crypto currencies by definition escape state control and supervision – quite to the concern of some states and about the local matador China. Fearing this, last September the Middle Kingdom had been forging hard bonds against cryptocurrencies, closing stock exchanges, and banning new cryptocurrencies, known as ICOs. In contrast, other countries, such as Japan, rely entirely on the potential of digital means of payment and accept Bitcoin as their official currency.
The range of government responses to the crypto-boom in the Asian economic space is reflected in the news this week – some optimistic, some skeptical attitude – on behalf of the southeast Asian tiger states of Singapore and Korea.
Singapore: The basis is missing for regulation!
For example, China’s neighbor in the south, the island state of Singapore is less worried this week: In an interview with US economic news broadcaster Bloomberg, director of Singapore’s central bank, Ravi Menon, said at Monday that Singapore has its eyes fixed on crypto currencies but wants them not to regulate first.
“It is well known that cryptocurrencies are often misused for illegal financial purposes. That’s why we want to fight against money laundering controls!” explained Menon. However, the need for fiscal regulation is not given.
According to Menon, it would rather be Singapore’s financial supervision to set up legal frameworks for intermediaries and file-sharing exchanges, for example. This would prevent digital money laundering.
According to reports, several states have been critical of the money laundering potential of crypto currency this week. For example, the US drug agency DEA and the central bank of the United Arab Emirates share the concerns of Singapore.
In general, Menon confirmed in an interview that the island state has an open course towards crypto currencies. As Coindesk reports, Finance Minister Tharman Shanmugaratnam made it clear earlier this month that Singapore has its options in view, but no intention to regulate digital currencies.
South Korea: Cryptocurrencies are commodities!
But the fact that such an open central bank rate does not determine the picture by far, everywhere is shown by the view of South Korea. For example, there were quite different sounds from the ranks of the top financial authorities in China’s eastern neighbor this week. According to Korean news service Seoul Yonhap-News and Coindesk, Korea’s central bank director Lee Ju-yeol said in an official statement to the state parliament that they are opposed To accept crypto currencies as a means of payment.
“Crypto currencies are a commodity, not a legal currency. Thus, their further regulation is permissible.” Lee Ju Yeol told the deputies.
With this assessment, the authority confirms its skeptical course towards crypto currencies. In the past few months, it had significantly strengthened its regulatory efforts, banning China Initial Coin Offerings (ICOs) in September.
In his assessment, Lee Ju Yeol states that it needed more research in the field of virtual currencies similar to Sweden. This allows crypto investors to continue their hopes. A complete turn away from the potential of digital means of payment does not seem to represent the rejection of the Korean Central Bank.
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