The Monetary Authority of Singapore (MAS) has informed Parliament that the central bank is considering imposing additional restrictions on cryptocurrency transactions. They include “imposing restrictions on retail participation and rules on the use of leverage when trading cryptocurrencies.”
MAS considers new restrictions on cryptocurrency trading
Tharman Shanmugaratnam, minister in charge of the Monetary Authority of Singapore (MAS), responded to a parliamentary question on the regulation of cryptocurrencies on Monday.
Murali Pillai, a member of the Singapore Parliament, asked if the MAS “intends to implement further restrictions on cryptocurrency trading platforms with a view to protecting the naive from entering into such transactions that are considered very risky.”
The MAS minister explained that since 2017, the central bank “has consistently warned that cryptocurrencies are not an appropriate investment for the retail public.”
He detailed that in January, the central bank “restricted the marketing and advertising of cryptocurrency services in public places and does not allow cryptocurrency transactions to be portrayed in a way that trivializes their risks.” He noted that since then, digital payment token (DPT) service providers in the country have taken action to meet the central bank’s rules, including “removing cryptocurrency ATMs from public places and removing advertising from public transportation venues.”
The minister further clarified that.
the MAS has carefully considered introducing additional consumer protection safeguards. This could include placing restrictions on retail participation and rules regarding the use of leverage in cryptocurrency transactions.
Minister Shanmugaratnam opined that “However, given the borderless nature of the cryptocurrency market, regulatory coordination and cooperation is needed globally.” He said, “These issues are being discussed in various international standard-setting bodies in which MAS is an active participant.” He elaborated.
MAS repeated its crypto warning on Monday.
Cryptocurrencies are very risky and not suitable for the average consumer. People could lose most of their invested money, and even more if they borrowed to buy cryptocurrency.
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