The monetary Authority of Singapore might contemplate “placing limits on retail participation” for investors, as well as introduce rules on the use of leverage for crypto transactions.
The monetary Authority of Singapore, or MAS, has been “carefully considering” adding restrictions that could affect however retail investors handle crypto, in line with one of the government’s senior ministers.
According to parliamentary records revealed on Monday, Singapore senior minister and MAS chair Tharman Shanmugaratnam said the monetary watchdog could consider “placing limits on retail participation” for crypto investors in addition as introducing rules on the utilization of leverage for crypto transactions. Shanmugaratnam additionally called for regulative clarity among monetary regulators around the world, “given the borderless nature of cryptocurrency markets.”
In January, the MAS barred crypto service suppliers from advertising or selling publically areas, and was behind laws to stop working crypto ATMs in Singapore — services that on the face of it show “cryptocurrency trading being delineate in a very manner that trivialises its risks.” in line with the MAS, the country’s Payment Services Act empowers the regulator to impose additional restrictions on crypto service providers ”to ensure higher client protection, and to keep up financial stability and safeguard the efficacy of financial policy.”
The financial watchdog said that “recent events” — seemingly concerning extreme volatility within the costs of major cryptocurrencies together with Bitcoin (BTC) — highlighted the risks of crypto investments. On June 30, the MAS reprimanded 3 Arrows Capital for allegedly “providing false info and exceeding assets under management threshold.” The Singapore-based company is also facing liquidation amid reports it did not meet margin calls from its lenders.
( Turner Wright, Cointelegraph, 2022 )