The Monetary Authority of Singapore (MAS) is considering restricting retail traders from cryptocurrencies. The head minister at the MAS, Tharman Shanmugaratnam, said that the regulator would implement new consumer safeguards targeting crypto investments.
Singapore regulator could add more restrictions on crypto
The minister released a statement on Monday in response to a lawmaker, Murali Pillai, who questioned the plans of the MAS to place restrictions on platforms offering crypto trading services. The lawmaker urged the MAS to put protection measures in place for unsophisticated investors planning to venture into crypto.
Track live crypto price of 10000+ coins!
Shanmugaratnam said that the regulatory body did not deem crypto assets ideal investments for the retail public because of their volatile nature. The minister also referred to the recent events in the crypto space that have portrayed the risky nature of the market after the prices of several tokens plunged massively.
Your capital is at risk.
Recent weeks have seen the crypto market enter a bear market. In June, Bitcoin and most cryptocurrencies plunged to 2020 lows. Last month’s bear market was attributed to the increased interest rates by the Federal Reserve to tame the rising inflation.
The collapse of Terra LUNA and the depegging of the UST stablecoin in May also lowered investor confidence in crypto investments. Moreover, several institutions were affected by the LUNA collapse and are currently facing liquidity issues. Three Arrows Capital, an investment firm that filed for insolvency recently, was exposed to LUNA.
Due to these events, the MAS now wants to limit the participation of retail traders in the crypto space. It is also looking at implementing laws on leverage crypto trading. However, the MAS notes that these rules will only be effective if global cooperation exists.
Crypto regulations in Singapore
Singapore is a major hub for crypto trading activities, and several crypto firms have set up operations there. The MAS has regulatory oversight over the crypto space in the country, and it has previously assured investors that it did not have plans to impose a blanket ban on crypto trading activities.
Earlier this year, the MAS implemented regulations surrounding cryptocurrency advertisements. The regulator said that some of these advertisements failed to inform the public about the regulatory risks posed by cryptocurrency investments. Singapore has also implemented tight anti-money laundering and anti-terrorism financing policies in the crypto space, as the Financial Action Task Force (FATF) recommends.
Lucky Block – Our Recommended Crypto of 2022
- New Crypto Games Platform
- Featured in Forbes, Nasdaq.com, Yahoo Finance
- LBLOCK Token Up 1000%+ From Presale
- Listed on Pancakeswap, LBank
- Free Tickets to Jackpot Prize Draws for Holders
- Passive Income Rewards – Play to Earn Utility
- 10,000 NFTs Minted in 2022 – Now on NFTLaunchpad.com
- $1 Million NFT Jackpot in May 2022
- Worldwide Decentralized Competitions
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: