Singapore mulls tightening cryptocurrency trading by retail investors
SINGAPORE: The chief of Singapore's central bank said the country is considering new measures that will make it more difficult for retail investors to trade cryptocurrencies at a time when they seem to be "irrationally oblivious" about the risks."Adding frictions on retail access to cryptocurrencies is an area we are contemplating," Ravi Menon, managing director of the Monetary Authority of Singapore (MAS) said at a seminar on Monday (Aug 29)."These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading," he added.The MAS in January issued guidelines to limit cryptocurrency trading service providers from promoting their services to the public, as part of its attempts to shield retail investors from potential risks.Mr Menon said in his speech on Monday that MAS regards cryptocurrencies as unsuitable for use as money and as "highly hazardous" for retail investors.But given that the cryptocurrency world is borderless, banning retail access is not likely to work, he said."With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies," he noted, adding that a multi-pronged approach is therefore required to safeguard consumers from harm."MAS is actively involved in international regulatory reviews to enhance market integrity and customer protection in the digital asset space," he said."Second, the industry has an important role in co-creating sensible measures to protect consumer interests."MAS has been sharing its concerns with the industry and inviting views on possible measures to minimise harm to consumers," Mr Menon said, adding that the authority will publicly consult
