The Monetary Authority of Singapore (MAS) has told parliament that the central bank is considering imposing additional restrictions on cryptocurrency trading. They include “setting limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”
MAS considers new restrictions on crypto trading
Tharaman Shanmugaratnam, the minister in charge of the Monetary Authority of Singapore (MAS), on Monday answered a parliamentary question about the regulation of cryptocurrency.
Murali Pillai, a member of the Parliament of Singapore, asked whether MAS intends to “impose further restrictions on cryptocurrency trading platforms to protect unsophisticated individuals from entering trades that are deemed to be highly risky.”
The minister in charge of the MAS pointed out that since 2017, the central bank has “relentlessly warned that cryptocurrencies are not a suitable investment for the retail public.”
He went on to elaborate that in January, the central bank “restricted the marketing and advertising of cryptocurrency services in the public domain, and did not allow cryptocurrency trading to be portrayed in a way that minimizes its risks.” Since then, digital payment token (DPT) service providers in the country have taken action to meet central bank regulations, which include “removing cryptocurrency ATMs from public areas and ads from public transport locations”.
The minister further disclosed:
MAS is carefully considering the introduction of additional consumer protection safeguards. These may include setting limits on retail participation and rules on the use of leverage when transacting in cryptocurrencies.
“Given the borderless nature of cryptocurrency markets, there is a need for regulatory coordination and cooperation at a global level,” Minister Shanmugaratnam said. “These issues are being discussed in various international standard-setting bodies where MAS actively participates,” he elaborated.
MAS reiterated its crypto alert on Monday:
Cryptocurrencies are highly risky and not suitable for the retail public. If people borrow to buy cryptocurrencies, they can lose most or more of the money they have invested.
What do you think of the comments of the Minister in charge of the Monetary Authority of Singapore (MAS)? Let us know in the comments section below.
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