The Monetary Authority of Singapore (MAS) has said it could introduce ‘customer suitability tests’ in an effort to discourage the trading of cryptocurrencies.
MAS managing director Ravi Menon used a speech earlier this week to say that despite ‘years of warnings and measures, Singaporeans are increasing trading cryptocurrencies’. He added that many people seem to be ‘irrationally oblivious’ about the risks of cryptocurrency trading.
Finextra noted that earlier this year, MAS restricted digital asset players from promoting cryptocurrency services at public spaces, leading to the dismantling of Bitcoin ATMs and the removal of advertisements in MRT stations.
Following this, MAS is now considering adding ‘frictions’ on retail access to crypto to strengthen trading rules on the virtual asset.
Menon said, “These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading.”
Menon, however, used the speech to rule out a ban on retail trading, saying that such a move would not work in a ‘borderless’ world.
This follows on from MAS recently claiming 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 it ‘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’.
Copyright © 2022 RegTech Analyst
Copyright © 2018 RegTech Analyst
