The Monetary Authority of Singapore (MAS) told Parliament that the central bank is considering imposing further restrictions on cryptocurrency trading. They include “the imposition of limits on retail participation and rules on the use of leverage during cryptocurrency transactions”.
MAS considers new restrictions on cryptocurrency trading
Tharman Shanmugaratnam, the minister in charge of the Monetary Authority of Singapore (MAS), responded to a parliamentary question on the regulation of cryptocurrency on Monday.
Murali Pillai, a member of the Singapore parliament, asked if the MAS “intends to implement further restrictions on cryptocurrency trading platforms in order to protect unsophisticated people from entering into such highly risky operations.”
The minister in charge of the MAS explained that since 2017 the central bank “has constantly warned that cryptocurrencies are not suitable investments for the retail public”.
He explained in detail that in January the central bank restricted “the marketing and advertising of cryptocurrency services in public areas and does not allow cryptocurrency trading to be represented in a way that trivializes its risks.” Since then, digital payment token (DPT) service providers in the country have taken action to comply with central bank rules, including the “removal of cryptocurrency ATMs from public areas and the removal of advertisements from public transport. “he noted.
The minister further revealed:
MAS has carefully considered the introduction of additional safeguards to protect consumers. These may include the imposition of limits on retail participation and rules on the use of leverage during cryptocurrency transactions.
Minister Shanmugaratnam said: “Given the borderless nature of cryptocurrency markets, however, regulatory coordination and cooperation is needed globally.” He explained: “These issues are being discussed in various international standards-setting bodies in which MAS actively participates.”
The MAS reiterated its crypto warning on Monday:
Cryptocurrencies are highly risky and are not suitable for the retail audience. People can lose most of the money they invested, or more if they borrow to buy cryptocurrencies.
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