The Monetary Authority of Singapore (MAS) has informed the parliament of Singapore that the central bank of the country is considering additional restrictions on crypto trade. The restrictions will further extend to a cap on retail participation and further guidelines on margin trading.
“Cryptocurrencies are highly risky and are not suitable for the retail public. People can lose most of the money they have invested, or more if they borrow to purchase cryptocurrencies.”
On Monday, Murali Pillai, a member of parliament asked if the MAS wants further restrictions on crypto platforms to safeguard “unsophisticated persons” from entering into risky trades. To this the minister in charge of the Monetary Authority of Singapore (MAS), Tharman Shanmugaratnam answered that ever since 2017 the central bank has issued warnings about cryptocurrencies not being a suitable investment for the common man.
He reminded the parliament that crypto marketing and advertising were restricted in public areas by the central bank. It was concerned about cryptocurrency trading being portrayed in a manner which plays down its risks.
Digital payment token (DPT) service providers have since then taken steps to comply with the orders of the central bank. All cryptocurrency ATM’s, advertisements were removed from public areas.
“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,” the minister further said.
According to the minister, cryptocurrency is a good payment system because of “the borderless nature of cryptocurrency markets,” but the sector needs to be regulated with “coordination and cooperation globally.”
He says that these factors are also being considered and being discussed at various international standard-setting bodies where MAS actively participates.