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Singapore Regulator MAS Considers Additional Measures to Limit Retail Investor Participation in Crypto Markets

source-logo  coincodex.com 05 July 2022 13:12, UTC

Singapore regulator is considering "additional consumer protection safeguards" for crypto

  • Singapore’s financial regulator Monetary Authority of Singapore (MAS) says that they are considering “additional consumer protection safeguards” related to cryptocurrencies.
  • In a reply to a question from member of parliament Murali Pillai, who asked if the MAS was planning to impose additional cryptocurrency restrictions to protect “unsophisticated persons”, MAS chairman Tharman Shanmugaratnam stated:

    “MAS has been carefully considering the introduction of additional consumer protection safeguards. These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies. Given the borderless nature of cryptocurrency markets, however, there is a need for regulatory coordination and cooperation globally.”
  • In January, the MAS issued guidelines that restrict cryptocurrency advertisements in public areas, and said that cryptocurrency service providers should not trivialize the risks of cryptocurrency trading. The MAS maintains that cryptocurrency is “highly risky and not suitable for the general public”. Following the release of the guidelines, crypto businesses in Singapore have responded by removing advertisements and cryptocurrency ATMs from public areas.
  • In the recent statement, Shanmugaratnam said that recent events have “vividly demonstrated” the risks associated with cryptocurrency, as several cryptocurrencies have suffered drastic price declines.
  • Indeed, the cryptocurrency market has been struggling mightily this year. On a year-to-date basis, 78 of the top 100 cryptocurrencies by market capitalization are down by 50% or more. 47 of them have lost 70% or more. The largest cryptocurrency by market capitalization, Bitcoin, is down about 58.7% since January 1.
  • In late June, the MAS reprimanded crypto hedge fund Three Arrows Capital for allegedly providing false information and having more AUM (assets under management) than their registration allowed. According to the MAS, Three Arrows Capital was allowed to manage a maximum of SGD 250 million ($177.8 million). According to the regulator, Three Arrows Capital exceeded this limit between July and September 2020 and November and August 2021.
coincodex.com