Crypto tokens not yet a ‘significant risk’ – MAS’s Menon

The Monetary Authority of Singapore believes “crypto token” activities do not yet pose a “significant risk” to financial stability, but the central bank is looking at “unconventional ways” to monitor these activities. 

Speaking at a fintech conference on March 15, MAS managing director Ravi Menon said he preferred the term “crypto tokens” to “cryptocurrencies” because the former “began life” as the medium of exchange backed by blockchain, but has now assumed “a life of its own” beyond the underlying technology.

“MAS assesses that the nature and scale of crypto token activities in Singapore do not currently pose a significant risk to financial stability. But this situation could change, and so we are closely watching this space,” he said. Menon’s comments echo the position of the Financial Stability Board, as outlined by chair Mark Carney on March 18.

“Not all developers and programmers in the crypto world are anti-Establishment anarchists. Many may have been 10 years ago, but a growing number are married and have kids now! They know the value of stability,” added Menon.

Currently, the MAS has “chosen not to” directly lay down regulation on crypto. Yet, Menon said the MAS is exploring ”unconventional ways” to collect data, including by examining information from crypto token blockchains, and using the application programming interfaces provided by crypto exchanges to gather real-time data on flows in the market.