Singapore Seeks to ‘Balance’ Economic Innovation While Shielding Public From the Metaverse

Singaporeans are being asked to participate “responsibly” inside the metaverse in the face of potentially increasing regulation

article-image

Singapore skyline. Source: Shutterstock

share

key takeaways

  • Singapore is “closely studying” the risk non-fungible tokens, decentralized finance and the financial events inside the metaverse pose to its citizens, according to the country’s Minister for Communications
  • The minister also cautioned those involved to “play their part by participating responsibly in the metaverse.”

Singapore is “closely studying” the impact new technologies such as non-fungible tokens (NFTs), decentralized finance (DeFi) and the metaverse pose to its citizens, the country’s Minister for Communications and Information revealed during a parliamentary sitting on Tuesday.

“The government will seek to balance between promoting economic vitality, preserving social stability and protecting public security in the digital domain,” minister S. Iswaran said.

The minister also cautioned those involved to “play their part by participating responsibly in the metaverse.”

The minister’s comments come as developments in the NFTs sector as well as in DeFi have shown those investing remain vulnerable to rug pulls — a scam whereby creators of a project up and vanish with investors’ funds.

Singapore, known for its crypto-friendly stance and seemingly welcoming view on the nascent industry, has often come at odds with crypto businesses attempting to set up shop in the island-city-state.

Under a licensing regime, those initial coin offerings and crypto exchanges working inside Singapore’s jurisdiction are required to register with the country’s central bank, the Monetary Authority of Singapore (MAS).

Last year, more than 100 out of around 170 businesses that had applied for a digital payment token license were denied by MAS or were withdrawn altogether, Nikkei Asia reported in December.

Similarly, Binance, the world’s largest crypto exchange by trade volume, decided to withdraw its application late last year for its Singaporean entity Binance.sg, citing a sidestep investment into Singaporean exchange, HGX.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million