Singapore Crypto Trading May Become Harder After Further Restrictions

MD’s Say On New Singapore Crypto Trading

In a speech release titled “Yes to Digital Asset Innovation, No to Cryptocurrency Speculation“, the Managing Director of the Monetary Authority of Singapore, Ravi Menon, mentioned the following reasons for a new set of Singapore crypto trading rules:

• Many consumers are still enticed by the prospect of sharp price increases in cryptocurrencies.
• They seem to be irrationally oblivious about the risks of cryptocurrency trading.
• Consumer-related risks have gained the attention of regulators around the world.

He then noted that the new Singapore crypto trading rules might sound confusing but are to be passed for doing good to the consumers involved in the cryptocurrency domain. The reasons for such a stance are listed below:

• Adding frictions on retail access to cryptocurrencies is an area we are contemplating.
• These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading.
• But banning retail access to cryptocurrencies is not likely to work.  The cryptocurrency world is borderless. 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.

In addition, the risks in the crypto domain will also be minimized after proper regulation by the MAS. This is why it is functioning in line with the global regulators for the betterment of citizens in the country. Therefore, expect Singapore crypto regulations to be stringent in the near future.