Singapore Considers Stricter Rules for Retail Crypto Investors — Regulator Says Cryptocurrencies Are ‘Highly Hazardous’ – Regulation Bitcoin News

Singapore’s central bank, the Monetary Authority of Singapore (MAS), is contemplating imposing stricter rules on retail crypto investors. “MAS regards cryptocurrencies as unsuitable for use as money and as highly hazardous for retail investors,” said the central bank chief.

Singapore’s Retail Crypto Investors May Get New Rules

Ravi Menon was the Monetary Authority of Singapore’s (MAS) managing director. He spoke about crypto regulation Monday at the Green Shoots seminar.

He outlined five areas of risk in digital assets that the central bank’s regulatory approach is focused on. These include fighting money laundering and terrorist financing risk; managing cyber-related and technology risks; protecting against retail investors from harm; upholding stability in stablecoins; as well as mitigating financial stability potential risks.

Chief of the central bank noted that:

MAS considers cryptocurrencies unsuitable to be used as money, and highly dangerous for retail investors.

“Cryptocurrencies lack the three fundamental qualities of money: medium of exchange, store [of] value, and unit of account,” he emphasized.

Menon stated that it will be more difficult for retail investors trade cryptocurrency due to the new regulations. “Adding frictions on retail access to cryptocurrencies is an area we are contemplating,” he revealed, elaborating:

This could be customer suitability checks and the restriction of leverage and credit facility use for cryptocurrency trading.

But, the central banker stressed this:

It is highly unlikely, however that retail access to cryptocurrency will be banned.

“The cryptocurrency world is borderless. With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies,” he opined.

“MAS’ development strategy makes Singapore one of the most conducive and facilitative jurisdictions for digital assets,” Menon concluded. “At the same time, MAS’ evolving regulatory approach makes Singapore one of the most comprehensive in managing the risks of digital assets, and among the strictest in areas like discouraging retail investments in cryptocurrencies.”

Let us know what you think of the comments made by the Singapore central bank head. Comment below.

Kevin Helms

Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His main interests are in Bitcoin security, open source systems, network effects, cryptography, and intersections between economics, cryptography, and Cryptography.