According to a senior minister in the government, the Monetary Authority of Singapore, or MAS, has been “seriously reviewing” additional rules that would influence how ordinary investors deal with cryptocurrency.
Tharman Shanmugaratnam, a senior minister in Singapore and the head of the MAS, reportedly stated that the financial watchdog may explore “putting limitations on retail involvement” for cryptocurrency investors as well as implementing regulations on the use of leverage for cryptocurrency transactions.
In addition, Shanmugaratnam urged financial authorities worldwide to clarify their regulations “given the international character of cryptocurrency markets.”
Monetary Authority of Singapore banned crypto ads in public spaces
The MAS banned cryptocurrency service providers from marketing or advertising in public places in January, and it was behind laws to shut down crypto ATMs.
These actions appear to demonstrate “cryptocurrency trading being depicted in a manner that trivializes its hazards.”
The Payment Services Act of the nation, according to the MAS, gives the regulator the authority to place further limitations on cryptocurrency service providers “to provide greater consumer protection, to preserve financial stability, and to defend the efficacy of monetary policy.”
The financial watchdog said that “recent events” have exposed the hazards of investing in cryptocurrencies, most likely alluding to the extraordinary volatility in the pricing of popular cryptocurrencies like Bitcoin (BTC).
For allegedly “providing misleading info and exceeding assets under management criterion,” the MAS censured Three Arrows Capital on June 30.
The MAS is still debating whether to approve businesses handling digital assets in Singapore, notwithstanding the market collapse. The financial watchdog gave Crypto.com in-principle permission in June, allowing the cryptocurrency exchange to offer specific payment services in the nation.
While Binance announced plans to end operations in Singapore in February, other cryptocurrency firms including Bitstamp Limited, Coinbase Singapore, and Gemini Trust have been given exemptions for holding a license in Singapore.
