Singapore’s central bank, the Monetary Authority of Singapore (MAS), is considering introducing stricter rules on retail crypto investors. The head of the central bank said, “MAS considers cryptocurrencies unsuitable for use as money and too risky for retail investors.”
New rules could be coming to retail crypto investors in Singapore.
Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), spoke about cryptocurrency regulation at the Central Bank of Singapore’s Green Shoot seminar on Monday.
The central bank’s regulatory framework has focused on five risks in digital assets. They are fighting money laundering and terrorist financing; managing technology and cyber-related risks; Prevention of harm to retail investors; supporting the prospect of stability in stablecoins; and reducing potential financial stability risks.
According to the head of the central bank:
MAS considers cryptocurrencies unsuitable for use as money and too risky for retail investors.
“Cryptocurrencies lack three basic financial characteristics: currency, storage [of] Value and Unit of Account,” he emphasized.
The new regulatory measures will make it difficult for retail investors to trade cryptocurrencies, Menon said. “Increasing volatility in retail cryptocurrencies is an area we’re thinking about,” he explained.
These may include customer suitability tests and restrictions on the use of credit facilities for cryptocurrency transactions.
However, the Central Bank in 1999.
But banning retail trading into cryptocurrencies won’t work.
“The world of cryptocurrency is borderless. With just a mobile phone, Singaporeans can access any crypto exchange in the world and buy or sell any cryptocurrencies,” he commented.
“MAS” growth strategy makes Singapore one of the most favorable and conducive regions for digital assets, concluded Menon. “At the same time, MAS’ improved regulatory approach will make Singapore one of the most comprehensive and stringent in managing the risks of digital assets, and encourage retail investments in cryptocurrencies.”
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