The state of Singapore is slowly becoming a preferred destination for Blockchain companies looking to launch an ICO. The country has long been a hub for start-ups due to factors such as tax-friendly regulations and government funding. Singapore has also hosted a number of successful ICOs in the past.
Singapore’s Efforts to Support Blockchain and Cryptocurrencies
Singapore government, central bank Singapore Monetary Authority (MAS) launched various programs to support the FinTech industry. One of the initiatives is to set aside $166 million for the development of FinTech projects and applications.
The central bank has also named “Project Ubin” to embrace cryptocurrencies. It also offered a tokenized version of the Singapore dollar below. The token exists on an Ethereum-based blockchain. The aim of the project is to create a functional alternative in the country’s interbank payment network with Token and Blockchain technology.
MAS, meanwhile, has started to regulate digital currencies in order to protect its ICO activities. MAS also wants to protect Singapore’s reputation as a financial hub and prevent money laundering. With the necessary regulations, investors are protected so that more people can participate in the ICO.
On the issue of whether virtual currencies can be accepted as a legal currency, MAS said that the function of cryptocurrencies goes beyond being a digital currency.
According to what was explained in the MAS declaration:
“The function of digital tokens has gone beyond being just virtual money. For example, digital tokens can represent property or security interests.”
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