Tharman Shanmugaratnam, chairman of the Monetary Authority of Singapore (MAS), the central bank of Singapore, has said that there should be only one regulatory framework for both digital assets and traditional finance (TradFi).
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According to him, the focus of supervisory authorities should be on money laundering issues in relation to both traditional and digital assets.
Shanmugaratnam has wondered whether cryptos would formally legitimize such an approach, in which the activities related to them will be equated with the work of banks and insurance companies.
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He has asked:
"Will it legitimize something that is inherently purely speculative and actually a little crazy?"
Shanmugaratnam has also suggested that the definition of an unregulated market should be as clear as possible. This way, investors would be aware that they are going at their own peril and risk.