News

Singapore to tighten retail crypto trading rules

Despite numerous warnings and limiting measures, Singaporeans are increasingly trading crypto, MAS ponders tightening retail crypto trading policies with “customer suitability tests”

Singapore crypto

Singapore to tighten retail crypto trading rules. Source: unsplash.com

The Monetary Authority of Singapore (MAS) ponders tightening retail crypto trading policies with “customer suitability tests”. The regulator will publicly consult on the restrictions proposals by October. 

Despite numerous warnings and limiting measures, Singaporeans are increasingly trading crypto, MAS managing director Ravi Menon said during a speech on Monday. Moreover, most crypto enthusiasts seem to be “irrationally oblivious” about the risks of such trading.

Singapore was an early adopter of blockchain technology. However, becoming a crypto hub without global regulatory coordination bears certain risks. Now MAS wants to add clarity to the industry. There are already rules in Singapore around product suitability, fair dealing, disclosures and consumer knowledge assessment that may be adapted for cryptocurrencies. 

Singapore crypto restrictions

In January, MAS restricted digital asset players from promoting cryptocurrency services in public spaces. That move led to the dismantling of Bitcoin ATMs and the removal of advertisements in MRT stations. Further measures will add “frictions” to retail crypto access, although not ban it completely. 

“These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading,” said Menon. 

Using leverage in crypto trading presupposes investors taking loans to purchase larger amounts of cryptocurrency. This approach magnifies the potential gains in the case of wise investment decisions. However, leverage can also increase investors’ losses.

The regulator has also enhanced the sector scrutiny in recent weeks. It sent a questionnaire to some applicants and holders of its digital-payments license seeking information about their business activity and holdings.

SEE MORE:

Google Cloud joins MAS to catalyse climate fintech solutions

Meta invests in a Singaporean startup Take App

Thinking about migrating to Singapore: here are 7 things you should know

Nina Bobro

1487 Posts 0 Comments

https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.