Investors ‘irrationally unaware’ of the risks of cryptocurrency trading: Singapore’s financial regulator

The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulator, is considering adding more protections for cryptocurrency users by making it more difficult to purchase cryptocurrencies.

MAS will begin exploring ways to add friction to retail access via customer suitability tests, and restrict access to credit and credit facilities to reduce rogue investments, according to the Agency Managing Director Ravi Menon.

Menon He said At Monday’s Green Shoots symposium that despite “critical early steps to mitigate consumer harm,” many consumers are still “unreasonably unaware of the risks of cryptocurrency trading.” However, Menon said a total ban is “unlikely to work”, because the industry is limitless and Singaporeans can access the market “with just a mobile phone”.

As the agency continues to promote “Singapore as a fintech hub,” these ambitions should not outpace consumer protection. “Innovation and regulation are not incapable of coexisting,” he added.

MAS will also seek to engage international regulatory reviews, co-create various measures to minimize harm to investors and urge people to exercise caution before investing.

Last month, the central bank started first thinking The idea of ​​limiting investor participation, with MAS Chairman Tharman Shanmuharatnam also Forecasting The above provisions.

Since 2017, MAS has consistently warned that cryptocurrency is not a suitable investment for retail […] Recent events have clearly demonstrated the risks, says Shanmoharatnam.

Singapore is messing with cryptocurrency

This is far from the first city-state encounter with cryptocurrency.

In January, the financial authority subtracted On crypto ads, it states that companies “should not appear for DPT trade.” [digital payment tokens] in a way that minimizes high trading risks.

MAS was also a key player in the investigation of Three Arrows Capital (3AC), a crypto hedge fund firm that recently filed for bankruptcy. accusatory The company that “provided false information” in June. 3AC was also reprimanded for failing to notify the agency of changes to its “board appointments and holdings of its directors.”

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