The fintech chief at the Capital Authority of Singapore (MAS), the country’s de facto central bank, has said that bitcoin is improbable to cause a global financial meltdown similar to the Lehman Brothers bankruptcy in 2008.
Stick up for b act on in an interview with Channel News Asia, MAS chief fintech manager Sopnendu Mohanty said that he does not foresee a bitcoin appraisal collapse triggering a major financial crash, adding there are clues that global regulators are “getting serious” about the cryptocurrency bazaar.
Mohanty said:
“We know exactly when to intervene, based on the sell size and the demand and transaction volume, and we will come in at the right dated. So, I’m not overly worried about getting to some large financial process crisis.”
The fintech head further stated that regulators would bear down on forward to apply regulation on consumer protection amidst hype in the digital currency market-place.
MAS has made several statements on cryptocurrencies and initial coin offerings in late months.
In December 2017, citing the recent “speculative” escalation in assays across the crypto markets, the monetary authority released a statement advising the universal to take “extreme caution” if investing in digital currencies.
And the previous month, MAS declared guidance on the application of securities laws when it comes to initial mint offerings (ICOs).
It stated at the time that tokens sold entirely the ICO model may be considered securities under certain circumstances, according to Singapore’s Confidences and Futures Act and the Financial Advisers Act.
Its report included case studies, grouping a token tied to a computing power-sharing platform (which wouldn’t count as a assurance) and another of on a token connected to a startup investment fund (which resolve count as a security).
Lehman Brother image via Wikimedia Commons
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