After ranking number 1 as the most crypto-friendly nation, Singapore regulators now call crypto ‘highly hazardous.’ The Monetary Authority of Singapore (MAS) is planning to bring stricter rules for crypto retail investors. They deem cryptocurrencies to be unsafe for monetary use and have devised several areas of risk in digital assets. The Central Bank of Singapore has been calling for tighter regulations for quite a while now, and it’s finally here.
Stricter rules for crypto retail investors
The managing director of MAS, Ravi Menon, recently shared his views on crypto at the Green Shoots seminar on the 29th of August. He talked about various risk areas that the Central Bank of the country is focusing on while bringing new regulations. The first and most talked about are money laundering and terrorism financing. It is one of those areas that almost all countries are focused on and are working to bring regulations.
Secondly, we have cyber-security risks and managing tech, which is because blockchain is a new field, and there are very few experts. It is followed by investor protection, ensuring stablecoins don’t depeg and prevent economic instability because of cryptocurrencies. All of these are valid concerns, but I believe that the crypto market is not big enough to affect a country’s economy negatively if something goes wrong.
Singapore’s new approach to regulations
The MAS has deemed crypto as a high-risk category for investors, especially retail ones. Ravi Menon has clearly stated that they are planning on bringing regulations that will make it difficult for retailers to trade or invest in crypto. The idea is to add friction so that the activity is at least reduced. Now, that is something that goes completely against the Central Bank of Singapore’s statement when they wanted to become a responsible global crypto hub.
Something that they might do is stop leverage trading and also conduct customer suitability tests. Menon knows that a complete ban won’t work, so that’s not what they plan to do because citizens will still be able to access crypto with other platforms from all across the world.
This step by Singapore is likely going to take away its crypto-friendly country title. What do you think as Singapore regulators call crypto ‘highly hazardous’? Let us know in the comments below. Also, if you found our content informative, share it with your friends.