- The chairman of the Monetary Authority of Singapore told the Parliament of Singapore today that the central bank may seek to limit retail participation in crypto markets. It also plans to ban leveraged trading tools.
- The central bank has already banned crypto advertisements in public places and marketing which mitigates the risks of trading.
- Unlike European regulatory bodies, MAS is more concerned with protecting consumers than regulating anonymous transactions.
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The Monetary Authority of Singapore is considering limiting retail participation in the crypto market and restricting leveraged trading tools. The central bank of Singapore has already banned crypto marketing in public places.
Singapore Central Bank Weighs In on Crypto Regulation
The Monetary Authority of Singapore (MAS) is planning to implement a ban on crypto trading.
Tharman Shanmugaratnami, President of the Central Bank of Singapore Told Singapore’s parliament said today that it “continues to warn that cryptocurrencies are not a suitable investment for the retail public” and is considering introducing additional customer security safeguards.
According to Shanmugaratnam, these safeguards will include limiting retail participation and regulating the amount of leverage that can be used in crypto transactions. While Shanmugaratnam did not elaborate on the central bank’s weighting measures, his statement was related to a query on crypto trading platforms, suggesting Singapore’s crypto exchanges may soon face regulatory scrutiny.
Shanmugaratnam said that MAS began taking steps in January to tackle crypto marketing; Notably, companies that offer crypto services are no longer allowed to advertise in public areas or portray business in a frivolous manner. Crypto ATMs have also been removed from public areas.
Shanmugaratnam said that the borderless nature of crypto markets has necessitated international regulatory coordination, and added that MAS was discussing these issues with various international bodies. As public interest in cryptocurrency technology has grown, government agencies around the world have expressed concerns about the decentralized nature of crypto assets. last month, The US Department of Justice published a report stating that “jurisdictional arbitration” has caused problems for crypto law enforcement.
The central bank’s stance follows the biggest crypto bull market ever, in the depths of a month-long market-wide recession. As the market rallied throughout 2021, retail investors piled in meme coins like bitcoin, ethereum, NFT, and Dogecoin, only for most assets to crash wipe out most of their value. Global cryptocurrency market capitalization reached a peak of $3 trillion in November 2021; Today its value is about $ 929 billion.
While MAS focuses most on protecting customers, European regulators have expressed concerns about the financial anonymity that crypto technology can provide to its users. In March, the European Parliament voted To force crypto exchanges to submit data about all transactions made with “unhosted wallets”. Lithuania has since followed Magnificent Complete ban on all “anonymous wallets”.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.