The Monetary Authority of Singapore (MAS) has claimed it will not rule out adding further restrictions on retail crypto-traders as well as amending existing legislation.
Following a question raised by one of Singapore’s MPs, Tharman Shanmugaratnam – the chairman of MAS – said that MAS ‘has been carefully considering the introduction of additional consumer protection safeguards’.
Shanmugaratnam added, “These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies. The chairman added that the borderless nature of cryptocurrency markets also implies ‘a need for regulatory coordination and cooperation globally’.
He continued, “These issues are being discussed at various international standard-setting bodies where MAS actively participates.”
According to Decrypt, these comments made by the MAS chairman came hot on the heels of the regulator’s move to reprimand Singaporean crypto fund Three Arrows Capital for allegedly providing false information and exceeding assets under management threshold.
Shanmugaratnam remarked, “Since 2017, the MAS has consistently warned that cryptocurrencies are not suitable investments for the retail public.”
He also said that most cryptocurrencies are subject to ‘sharp speculative price swings’ and that ‘recent events have vividly demonstrated the risks, with prices of several cryptocurrencies falling drastically’.
The MAS recently released the first use case of its NovA!, which aims to combat greenwashing.
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