Singapore Considers Imposing New Restrictions on Crypto Trading

Singapore Considers Imposing New Restrictions on Crypto Trading

The Monetary Authority of Singapore (MAS) has told Parliament that the Central Bank is considering imposing additional restrictions on cryptocurrency trading. They include "placing limits on retail participation and rules on the use of leverage when transacting in cryptocurrencies."

New Crypto Trading Regulations Coming Up

Tharman Shanmugaratnam, the Minister-in-Charge of the Monetary Authority of Singapore (MAS), replied to a parliamentary question on the regulation of cryptocurrency.

Murali Pillai, a Member of the Singapore Parliament, questioned whether the MAS "intends to implement further restrictions on cryptocurrency trading platforms 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 explained that in January, the Central Bank restricted "the marketing and advertising of cryptocurrency services in public areas and disallowed cryptocurrency trading from 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 said.

The Minister further added:

"MAS has been carefully considering the introduction of additional consumer protection safeguards. These may include placing limits on retail participation and rules on the use of leverage when transacting in cryptocurrencies."

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."

The MAS Crypto Warning

"Cryptocurrencies are highly risky and are not suitable for the general public. People can lose most of the money they have invested, or more if they borrow to purchase cryptocurrencies."