The Monetary Authority of Singapore (MAS) has told parliament that the central bank is considering imposing additional restrictions on cryptocurrency trading. They include “imposing limits on retailer participation and rules on the use of leverage when trading cryptocurrencies.”
MAS considers new restrictions on crypto trading
Tharman Shanmugaratnam, the minister in charge of the Monetary Authority of Singapore (MAS), answered a parliamentary question on cryptocurrency regulation on Monday.
Murali Pillai, Member of Parliament from Singapore, asked whether the MAS “intends to implement further restrictions on cryptocurrency trading platforms with a view to protecting unsuspecting individuals from entering such trades that are considered very risky”.
The minister in charge of MAS explained that since 2017, the central bank “has constantly warned that cryptocurrencies are not appropriate investments for the retail public”.
He detailed that in January, the central bank restricted “the marketing and advertising of cryptocurrency services in public spaces, and prohibited cryptocurrency trading from being presented in a way that trivializes its risks. ”. Since then, digital payment token (DPT) service providers in the country have taken steps to comply with central bank rules, including “removing cryptocurrency ATMs from public areas and removing advertisements places of public transportation,” he noted.
The Minister further disclosed:
MAS has carefully considered the introduction of additional consumer protection safeguards. These may include limits on retailer participation and rules on the use of leverage when trading cryptocurrencies.
Minister Shanmugaratnam said, “Given the borderless nature of cryptocurrency markets, however, regulatory coordination and cooperation is required globally.” He clarified: “These issues are being discussed in various international standards bodies in which MAS actively participates.”
The MAS reiterated its crypto warning on Monday:
Cryptocurrencies are very risky and not suitable for the general public. People can lose most of the money they have invested, or more if they borrow to buy cryptocurrencies.
What do you think of the remarks of the Minister in charge of the Monetary Authority of Singapore (MAS)? Let us know in the comments section below.
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