Singapore’s central bank, the Monetary Authority of Singapore (MAS), is considering imposing stricter regulations on retail crypto investors. “MAS considers cryptocurrencies unsuitable for use as money and highly dangerous for retail investors,” the central bank chief said.
New rules may be coming for retail crypto investors in Singapore
Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), Singapore’s central bank, spoke about cryptocurrency regulation at the Green Shoots symposium on Monday.
He outlined five areas of risk in digital assets on which the central bank’s regulatory approach is focused. They are combating money laundering and terrorist financing risks; Management of technology and cyber-related risks; protection against loss to retail investors; Upholding the promise of stability in stablecoins; and mitigating potential financial stability risks.
The central bank chief said:
MAS considers cryptocurrencies unfit for use as money and highly dangerous for retail investors.
“Cryptocurrencies lack the three fundamental qualities of money: medium of exchange, store” [of] value, and the unit of account,” he emphasized.
Menon explained that the new regulatory measures will make it more difficult for retail investors to trade cryptocurrencies. “Adding friction on retail access to cryptocurrencies is an area we are looking at,” he revealed, elaborating:
These may include testing customer suitability and restricting the use of leverage and credit facilities for cryptocurrency trading.
However, the central banker insisted:
But banning retail access to cryptocurrencies is not likely to work.
“The world of cryptocurrency is borderless. With just a mobile phone, Singaporeans have access to any crypto exchange in the world and can buy or sell any number of cryptocurrencies they want,” he said.
Menon concluded, “MAS’s growth strategy makes Singapore one of the most favorable and convenient jurisdictions for digital assets.” “At the same time, MAS’s evolving regulatory approach makes Singapore one of the most comprehensive in managing digital asset risks and one of the strictest in areas such as discouraging retail investment in cryptocurrencies.”
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