Ravi Menon: «Don't Front-load Fintech Regulation»
The head of the Monetary Authority of Singapore warned investors to weigh up the «significant» risks before pouring money into cryptocurrencies.
Menon who won the accolade of Asia's outstanding central banker earlier this year was among a number of prominent speakers rolled out by Japanese investment bank Nomura at its annual investment forum on Tuesday. He presented an overview of his divisions current concerns and its aspirations for fintech in Singapore and Southeast Asia.
Recently, Menon and the MAS have sought to cool ultra-hot demand in Asia for cryptocurrencies. During his session Menon again warned investors to weigh up the «significant» risks before pouring money in.
Light but Firm Touch
He also highlighted a recent case involving regulatory action against an initial coin offering issuer which was closed down by the regulator as it breached the Securities and Futures Act (SFA).
When it comes to managing fintech innovation, Menon said the first principle «is to not front-load regulation but to keep abreast of innovation.» «Financial regulators have to find a balance that is proportional,» he added.
Under his leadership the regulator's light touch has allowed financial technology innovations to flourish. One example Menon shared was insurtech firm Policy Pal. The Singapore-based firm was the first start-up to graduate from the MAS' fintech, regulatory sandbox.
