Regulators in Singapore are tightening their grip over crypto trading activities in the country. On Monday, August 29, the chief of Singapore’s central bank said that the city is considering new measures to make crypto trading even more difficult for retail investors.
In a seminar on Monday, Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), said:
“Adding frictions on retail access to cryptocurrencies is an area we are contemplating. “These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading”.
He further noted that retail investors have been “irrationally oblivious” about the risks associated with crypto trading. Earlier this year in January, the MAS issued guidelines to limit crypto trading service providers from promoting their services to the public. This was a move to shield retail investors from the volatility in the crypto space.
MAS Making a Move on Crypto Regulations
Addressing the ongoing liquidity crisis and withdrawals, especially with the current case of troubled hedge fund Three Arrows Capital, the MAS is taking new measures to bring crypto regulations into the country.
Last week, the central bank of Singapore sent detailed questionnaires to all firms holding MAS’ Digital Payment Token licenses. As per the Bloomberg report, the goal was to obtain “highly granular information” regarding business activity and holdings of examined crypto firms.
The MAS aims to check the financial stability and interconnection among crypto firms. The bankrupt hedge fund Three Arrows Capital has given a major blow to the crypto markets this year.
The MAS is looking to seek some crucial details from crypto firms such as top lending and borrowing counterparties, top tokens owned, top tokens staked via decentralized finance protocols, and the amount loaned.
Last month in July, MAS chief Ravi Menon also said that they have been working on a regulatory framework. This framework will address “consumer protection, market conduct, and reserve backing for stablecoins”.
The post Singapore Plans to Make Crypto Trading More Difficult for Retail Investors appeared first on CoinGape.
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