Monetary Authority of Singapore has informed Parliament that it is looking at imposing further restrictions on cryptocurrency trading. They include “placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”
MAS Reconsiders Crypto Trading Restrictions
Tharman Shanmugaratnam (minister in charge of Monetary Authority of Singapore) answered a question from Parliament Monday about regulation of cryptocurrency.
Murali Pillai, a member of the Singapore Parliament, asked whether the MAS “intends to implement further restrictions on cryptocurrency trading platforms with a view to protect unsophisticated persons from entering into such trades which are considered highly risky.”
The minister in charge of the MAS explained that since 2017, the central bank “has consistently warned that cryptocurrencies are not suitable investments for the retail public.”
He detailed that in January, the central bank restricted “the marketing and advertising of cryptocurrency services in public areas, and disallow cryptocurrency trading being portrayed in a manner that trivializes its risks.” Since then digital payment token (DPT) service providers in the country have taken actions to meet the central bank’s rules, including “removing cryptocurrency ATMs from public areas and taking down advertisements from public transport venues,” he noted.
Further revelations were made by the minister:
MAS is currently considering additional protections for consumers. They could include limiting retail participation and rules regarding the use leverage in cryptocurrency transactions.
Minister Shanmugaratnam opined, “Given the borderless nature of cryptocurrency markets, however, there is a need for regulatory coordination and cooperation globally.” He elaborated, “These issues are being discussed at various international standard-setting bodies where MAS actively participates.”
Monday’s crypto-warning was reiterated by the MAS
You should not buy cryptocurrencies as they are risky. Borrowing cryptocurrency can cause people to lose most or all of what they invested.
Comment on comments made by minister responsible for the Monetary Authority of Singapore. Comment below.
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