Singapore mulls tightening rules around crypto-trading by retail investors
Singapore is planning to introduce new regulations that will tighten the trade of cryptocurrencies by retail investors, according to one of the country’s leading regulatory officials. The step is being taken to safeguard the interest of investors, given the fact that they remain “irrationally oblivious” about the risks associated with the market.
Ravi Menon, Managing Director, Monetary Authority of Singapore (MAS), was addressing a seminar titled “Yes to digital asset innovation, No to cryptocurrency speculation” this Monday when he made these remarks.
Menon said that though the MAS has said that it wants to attract cryptocurrency companies, it has a lengthy licensing process. It is in this stead that it is taking strong measures to restrict retail crypto-investments.
“There is greater impetus now among global regulators to enhance regulations in this space. MAS will also do so,” he added.
Singapore is one of the leading countries in the world for cryptocurrency and blockchain ventures. Singaporean authorities have shown a lot of willingness to develop the country as a leading fintech space.
China’s largest cryptocurrency exchange Huobi and the leading American exchange Gemini are two of the many cryptocurrency ventures that have invested in the country.
In 2019, Singapore passed the Payment Services Act to broaden the scope of financial regulation in the country. This, so that digital assets such as cryptocurrencies could also be regulated.
The MAS Chief’s recent remarks are a continuation of the policy of Singapore to increasingly regulate the cryptocurrency industry. As the cryptocurrency market spiralled south in 2022 in the wake of the collapse of TerraUSD and Luna, its ripple effects were felt in Singapore.
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