Key points to remember

  • The chairman of the Monetary Authority of Singapore today told the Singaporean parliament that the central bank may seek to limit the participation of individuals in crypto markets. It also plans to restrict leveraged trading tools.
  • The central bank has already banned crypto advertisements in public spaces and marketing that trivializes the risks of trading.
  • Unlike European regulatory bodies, the MAS appears more concerned with protecting consumers than regulating anonymous transactions.

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The Monetary Authority of Singapore is considering limiting retailers’ participation in the crypto market and restricting leveraged trading tools. Singapore’s central bank has already banned crypto marketing in public places.

Central Bank of Singapore Weighs Crypto Regulation

The Monetary Authority of Singapore (MAS) is planning to put in place restrictions on crypto trading.

Central Bank of Singapore President Tharman Shanmugaratnam Told Singaporean Parliament today that it has “consistently warned that cryptocurrencies are not suitable investments for the retail public” and considered introducing additional safeguards to protect customers.

According to Shanmugaratnam, these safeguards would include limiting the participation of retailers and regulating the amount of leverage that can be used in crypto transactions. Although Shanmugaratnam did not elaborate further on what action the central bank was considering, his statement concerned a question about crypto trading platforms, suggesting that Singaporean crypto exchanges may soon come under increased regulatory scrutiny.

Shanmugaratnam said MAS started taking action in January to fight crypto marketing; specifically, companies offering crypto services are no longer allowed to advertise in public spaces or allow commerce to be portrayed in a mundane manner. Crypto ATMs have also been removed from public areas.

Shanmugaratnam noted that the borderless nature of crypto markets necessitates international regulatory coordination and said MAS is discussing these issues with various international bodies. As public interest in cryptocurrency technology has grown, government agencies around the world have expressed concern over the decentralized nature of crypto assets. Last month the The U.S. Department of Justice released a report stating that “jurisdictional arbitration” poses problems for crypto law enforcement.

The central bank’s stance was revealed in the depths of a months-long market-wide meltdown following the biggest crypto bull market of all time. As the market grew throughout 2021, retail investors piled into Bitcoin, Ethereum, NFT and coins like Dogecoin, only to have most assets wipe out the majority of their value in the event of a crash. . Global cryptocurrency market capitalization peaked at $3 trillion in November 2021; today, its value is approximately $929 billion.

While MAS seems more focused on protecting customers, European regulators have expressed concerns about the financial anonymity that crypto technology could offer its users. In March, the European Parliament vote to force crypto exchanges to submit data on all transactions made with “non-hosted wallets”. Lithuania has since followed suit by imposing a blanket ban on all “anonymous wallets”.

Disclosure: At the time of writing this article, the author of this article owned ETH and several other cryptocurrencies.

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