Singapore’s New President, a Former Central Bank Chairman, Has Called Crypto ‘Slightly Crazy’

Cryptocurrency is a contradictory form of finance to traditional monetary systems, including currency and other financial assets. This lucrative yet risky digital asset is based on blockchain, a digital ledger or storage for the crypto data. The fame of cryptocurrency and blockchain-based technology is astonishingly widespread worldwide. 

On one hand, hundreds of thousands of crypto enthusiasts want to invest their money into crypto assets to gain instant profits. On the other hand, many argue about the regulatory reforms required in the crypto and other digital finance space, and Singapore is no exception. 

Singapore has been a business hub for cryptocurrency, with a profitable and productive market for crypto aficionados. The Monetary Authority of Singapore (MAS) recently issued a crypto licence to Blockchain.com for providing their services officially in the country. However, the newly elected Singapore President seems sceptical about cryptocurrency. 

Singapore – Crypto Market Overview

The residents of Singapore hold a high rank in the technology and finance sector, with a large population enthusiastic for innovation. It is due to this reason that Singapore offers a lucrative opportunity to earn riches for crypto investors and traders. This country hosts several crypto billionaires and millionaires with financial gain purely from cryptocurrency. 

The crypto market of Singapore extends a supportive hand toward individuals and organisations connected to crypto and other blockchain-based digital assets. As per the data from 2022, Singapore had a funded value for crypto organisations of around $196 million, with the leading crypto asset being Bitcoin. 

With this many impressive figures related to the crypto market, speculations about the futuristic Financial Technology (FinTech) asset become harder to digest. Therefore, the newly elected President of Singapore has an opinionated approach that may become a challenge for the cryptocurrency market in Singapore. 

Singapore’s New President and Cryptocurrency

In September of 2023, Singapore experienced an electoral event to elect the 9th president of the country. Tharman Shanmugaratnam, the former Finance Minister of Singapore and Chairperson of the Central Bank of Singapore, known as MAS. Tharman got a majority of votes with a 70% mandate to become the head of the state, succeeding Halima Yacob. 

The President’s stand about cryptocurrency in the past reflects his intention towards crypto regulations in the future. Chances are that Tharman will bring reforms and new policies regarding the country’s finances, including the fiat system and crypto. It is worth noting that the current President has sought improvement in the crypto policies of Singapore after a few unpleasant events, such as Terraform Labs and Three Arrows Capital.

With extensive experience in handling the economics of the state, Harman Shanmugaratnam is a top-profile financial expert who spent time in various institutions and places. Initially, Tharman supported and praised the benefits of cryptocurrency until 2023, when he called the innovative digital asset a speculative and crazy tool with unclear risks. 

Related: Bybit CEO: “Crypto Regulation in Asia — An Opportunity, Not a Crisis”

Is Crypto Investment Really Crazy?

Cryptocurrency has been in the market for over a decade, with numerous success stories and bankruptcies. Depending on your chosen strategy and market understanding, it can take your worth to the next level or drag you back to the starting point. Therefore, investing in crypto for the long term is a highly rewarding process. 

On the flip side, day trading offers more luxuries and revenue, but the risks associated with day trading are plenty. If you strive to explore the hard truths about crypto day trading, click here. An essential factor in crypto trading or investment is understanding the nature of the crypto coin, such as Bitcoin, Ethereum, Tether, etc. 

When you explore the crypto market thoroughly, you will start to recognise the risks and challenges associated with a crypto asset. It will alleviate the craze and speculation of cryptocurrency, making it a pure earning and revenue-generating opportunity. Let’s unravel the crypto world in terms of profits and market gains.

1. Crypto Speculation vs. Long-Term Investment

The crypto market is highly volatile, with frequent price fluctuation, making cryptocurrency a risky venture for investors and traders. Despite a detailed market analysis, some crypto coins will have difficulty gaining profits due to desperate market changes. Some individuals enjoy short-term speculation, avoiding the extended benefits of long-term crypto investments. 

A suggestion for short-term investors or day traders is to invest in stablecoins as they are backed by fiat currency with no or less price fluctuation. It is a safe game with better yield in terms of profits. However, the recent market activities of stablecoins made Singapore’s President entitle cryptocurrency as slightly crazy.

2. Decentralised Finance (DeFi) System

Cryptocurrency runs under the blockchain shadow, making it a decentralised or independent financial system. In other words, not a single organisation like a bank or government institution can interrogate the activities of a crypto asset. Due to this DeFi nature of cryptocurrency, it offers fast and reliable business transactions across the globe. 

However, the regulatory decisions contribute to the increment or decrease in crypto demand in a country. Some nations legislate positive regulatory policies, motivating crypto investors, while others degrade them to withdraw their investments, weakening the country’s economy. 

3. High Potential for Gains

Cryptocurrency investment and day trading is about assessing the market and performance of the crypto asset. Once you have the right knowledge in place, the world of crypto is filled with success and instant gains. 

However, the risk factors challenge crypto enthusiasts as the price may be controlled by many reasons, including artificial control. For instance, a group of people target a single coin and invest their money for a temporary boost. After reaching a certain point in the market, the group withdraws their money, nullifying the market. 

Last but not least, there will be another interesting crypto topic talking about Terra Luna.

Frequently Asked Questions

Is Crypto Investment in Singapore Legal?

Since Singapore has certain Securities and Futures Acts under Singapore Law, crypto assets comply with them and are legal. You can invest or trade with crypto assets in Singapore unless you disobey a single policy of their law. 

Is Singapore a Crypto-Friendly Country?

Singapore has a policy related to cryptocurrency and other innovative technologies, paving the way to operate in Singapore. Since this country has a reputable name in the global economy, Singapore has welcomed many remarkable crypto and blockchain organisations.

Is Singapore a Tax-Free Country for Crypto Traders?

Since crypto assets are not fiat currency, tax regulations do not comply with them, freeing the individual from tax payment. Singapore lacks Capital Gains Tax, making it a treasure for individuals and organisations to operate in this country.