The Monetary Authority of Singapore (MAS), Singapore’s central bank, is debating placing harsher regulations on small-scale cryptocurrency investors. The head of the central bank stated that «MAS views cryptocurrencies as unfit for use as money and as highly risky for retail investors.» Singapore Is Considering Tougher Regulations for Small-Scale Crypto Investors
Singapore’s Retail Crypto Investors May Face New Regulations
At the Green Shoots event on Monday, managing director of Singapore’s central bank, the Monetary Authority of Singapore (MAS), Ravi Menon, discussed regulating cryptocurrencies.
He listed five categories of risk associated with digital assets on which the regulatory strategy of the central bank is concentrated. They are preventing risks associated with money laundering and financing terrorism, managing risks associated with technology and cyberspace, protecting against harm to retail investors, upholding the stability promise of stablecoins, and potentially reducing risks associated with financial stability.
The head of the central bank noted:
Cryptocurrencies are viewed by MAS as being unsuitable for use as money and being extremely risky for retail investors.
He noted that «cryptocurrencies lack the three basic characteristics of money: means of exchange, store [of] value, and unit of account.»
According to Menon, trading cryptocurrencies will be more challenging for retail investors as a result of the new regulatory restrictions. He explained, «Adding frictions on retail access to cryptocurrencies is an area we are contemplating:
These could include limiting the use of leverage and credit facilities for bitcoin trading and conducting customer suitability checks.