The Singapore supervisory authority praised to deal with crypto relentlessly hard

According to his FinTech politician,

Singapore will act "brutally and relentlessly hard" against bad behavior in the crypto industry, which after years in which the city state has courted the sector, marks a clear turn in rhetoric.

Sopnendu Mohany, Chief Fintech Officer at the Monetary Authority of Singapore, the country's central bank, questioned the value of private cryptocurrencies and said that a state -supported alternative would be introduced within three years.

"We were shouted at by many cryptocurrencies because we were not friendly," he said in an interview. "My answer was: friendly for what? Friendly for a real economy or friendly for an unreal economy?"

Mohany added: "We do not tolerate bad market behavior. If someone has done something bad, we are brutal and relentlessly hard."

The crypto core melt has hardened the officials in Singapore, where many crypto companies were founded due to the regulatory environment and low taxes.

But crypto exchanges such as Bybit and Binance have avoided the city state in the past few months when the MAS began to introduce more and more restrictive rules.

Mohany spoke when South Korean prosecutors concentrated on Terraform Labs from Singapore, the company behind the collapsed stable coin Terrausd and its twin token Luna.

After the destruction of Luna in the amount of $ 40 billion, the large crypto hedge fund Three Arrows Capital, headquartered in Singapore, is also in front of a crisis after he has not fulfilled Margin Calls.

"I think the whole world is lost.. In private currency, which causes all these market turbulence," said Mohanty.

He said Singapore had enforced an "tormentingly slow" and "extremely draconian Due diligence process" for licensing crypto companies.

Singapore has only approved a few applications for a license to operate a crypto business.

crypto.com, a trading platform for cryptocurrencies, received the basic operating permit on Wednesday. Crypto.com has also received a license in Dubai and plans to start a cryptocurrency exchange service there.

But Mohany's comments indicate that some crypto companies in Singapore could look forward to a uncertain future.

This week, the MAS jointly launched an “excellence center” in the city-state in order to work on the development of a digital central bank currency, a concept that several countries examine to withdraw crypto companies control over online payments.

under the direction of the software developer Mojaloop and supported by the Singapore Temasek State Fund, the group hopes to implement the digital currency in a system that enables inexpensive international payments.

Mohany said his "best bet" was that a digital currency would be integrated into the platform within "a few years", and added that it would not be exclusively for Singapore and that other central banks would be available.

"We tirelessly focus on the infrastructure of the future economy, which can be based on a digital asset," he said.