Singapore, one of the world’s most important financial centers, will not issue any laws for the developing non-fungible token (NFT) market. The central bank of Singapore claims that the NFT market is still in its infancy, and that rather than regulating it in its current form, it would take a tech-neutral approach. In 2021, the NFT market exploded, with revenues reaching $25 billion, up 26,000 percent from just $95 million the year before.
Regulators from several countries are drawn to the market.
The NFT market has attracted some of the most well-known brands, including Nike and Coca-Cola, as well as personalities such as Snoop Dogg and Lionel Messi.
The rise has also drawn regulators who want to keep an eye on the industry’s rapid expansion. Singapore, on the other hand, will not be one of them. NFTs would remain unregulated, according to Tharman Shanmugaratnam. Who’s, Senior Minister in Charge of the Monetary Authority of Singapore (MAS), the country’s central bank.
According to local news outlet Fintech News Singapore, the MAS
“does not and cannot potentially oversee all things or products that people choose to invest their money in.”
Regulating the NFTs business would be a significant undertaking.
The central bank and the government, according to Tharman. It will not intervene with the industry for the time being and will take a tech-neutral position.
“The purported distinctiveness of NFTs, along with speculative demand, has served to increase prices.”
” If speculative ardour fades, this puts investors at risk of enormous losses,” the minister added.
The MAS minister stated that regulating the industry would be a difficult process that would need considering the legal risks. Then, and rights that NFT owners have. It’s unclear whether existing restrictions safeguard NFT owners in an industry that’s just getting started.
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