Singapore’s central bank, the Monetary Authority of Singapore (MAS), is considering introducing stricter rules on retail crypto investors. “MAS considers cryptocurrencies to be unsuitable for use as currency and too risky for retail investors,” the head of the central bank said.
New rules may backfire on retail crypto investors in Singapore
Ravi Menon, director of the Monetary Authority of Singapore (MAS), spoke about cryptocurrency regulation at the Green Shoot seminar on Monday.
The central bank’s regulatory framework has published 5 risk areas in digital assets. They are fighting the financial risks of concealment and terrorism; managing technology and cyber-related risks; Protection against harm to retail investors; supporting the prospect of stability in stablecoins; and reducing potential financial stability risks.
The head of the financial institution said the following:
MAS considers cryptocurrencies unsuitable for use as currency and too risky for retail investors.
“Cryptocurrencies lack the 3 basic qualities of money: currency, storage [of] Value, and unit of account,” he emphasized.
Menon said the new regulatory measures will make it difficult for retail investors to trade cryptocurrencies. “We tend to consider adding subdivisions with retail access to cryptocurrencies.
These may adopt customer suitability challenges and limit the use of leverage and credit institutions for cryptocurrency trading.
However, the Central Bank in 1999.
But retail trading into cryptocurrencies cannot be banned.
“The world of cryptocurrency is borderless. Singaporeans can easily access any crypto exchange in the world and buy or sell any cryptocurrency,” he commented.
The “MAS” growth strategy makes Singapore one of the leading contributors and contributors to digital assets. “At the same time, MAS’ improved regulatory approach makes Singapore one of the leaders in managing the risks of digital assets, and one of the strictest in terms of encouraging retail investments in cryptocurrencies.
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