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Policy & Regulation

Singapore Deputy PM recognizes the potential of Web3, aims for greater collaboration

02 Jun 2022 : 09:41
2 min read
  • Singapore Deputy PM said that one should have an open mind to approach Web3.
  • He also noted the potential risks associated with these technologies and called for better regulation.
  • Keat said that Singapore could achieve much more by accelerating its partnerships.

Heng Swee Keat, the Deputy Prime Minister of Singapore, recently talked about the potential benefits as well as risks involved with crypto adoption.

An open mind to approach Web3

During his recent speech at the second edition of the ATX Summit, Keat said that if the world wants to approach Web3, one should have an open mind.

“We must pierce through both the hubris and the veil of suspicion to understand the potentially transformative underlying technologies.”

He called the concept nascent and suggested not throwing the “baby out with the bathwater.” He went on to praise the new technologies for making cross-border transactions so fast and seamless. The Deputy Prime Minister said that blockchain technology has the potential to transform the future of finance. However, he noted that the crypto space is “highly risky.” To support his point, Keat mentioned the LUNA/UST meltdown and how it led to a severe loss for investors. He went on to call for a clear set of regulations. 

“We must continue to adapt our rules to ensure that regulation remains facilitative of innovation and yet addresses the key risks that crypto-assets pose.”

Notably, the Monetary Authority of Singapore (MAS) has constantly been warning the citizens against crypto and has taken measures to limit the crypto promotion to the general public earlier this year. 

He said that the regulatory bodies must guard against malicious activities, including cyber heists, data theft, and cyber terrorism, to harness the full potential of cyberspace. 

Like several countries formulating cybersecurity strategies, introducing fresh regulations, and building capabilities, Singapore has also made “digital defense the sixth pillar of Total Defense.”

Singapore is collaborating to unleash potential

Singapore is putting a strong “emphasis on adoption, investment in innovation, and closing the digital divide.” It started the Smart Nation movement and the Digital for Life movement to support its goals.

Recently, MAS has announced a collaboration with financial institutions in Project Guardian to research the use cases for DeFi. The government is actively assisting smaller merchants and firms in digitalizing payments and processes. Keat said that Singapore could achieve much more if it accelerates its partnerships in the field.

Anisha Pandey

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