Singapore's Central Bank Weighs Further Safeguards on Retail Crypto Trading
The Monetary Authority of Singapore may introduce rules on the use of leverage in crypto transactions.
:format(jpg)/downloads.coindesk.com/arc/failsafe/placeholders/16x9.png)
The Monetary Authority of Singapore (MAS) is considering introducing further safeguards on access to crypto among the general public, a senior government minister said.
- Tharman Shanmugaratnam, minister in charge of MAS, said in Parliament on Monday that the central bank may "place limits on retail participation" and introduce rules on the use of leverage in crypto transactions.
- Shanmugaratnam had been asked by member of parliament Murali Pillai whether the MAS intended to implement further restrictions on crypto trading platforms.
- "Since 2017, MAS has consistently warned that cryptocurrencies are not suitable investments for the retail public," Shanmugaratnam said. "Most cryptocurrencies are subject to sharp speculative price swings. Recent events have vividly demonstrated the risks, with prices of several cryptocurrencies falling drastically."
- In January, MAS introduced guidelines limiting how crypto firms could advertise to the public, preventing them from marketing their services in public areas or media that address the public, such as newspapers, broadcast, magazines or social media platforms.
- Last month, Sopnendu Mohanty, the central bank's chief fintech officer, said MAS plans to be "brutal and relentingly hard" on "bad behavior" in the crypto industry. In an interview with the Financial Times, Mohanty said Singapore had enforced a "painfully slow ... extremely draconian due diligence process" for licensing crypto firms in order to protect the wider economy.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.