Singapore’s MAS is considering stricter rules for retail Bitcoin, crypto investors
Crypto adoption is clearly on the rise, and regulators worldwide are keen to protect consumers from all inherent risks. In the latest development, Singapore plans to roll out new rules that will make it more difficult for retail investors to trade cryptos like Bitcoin.
Bitcoin, crypto traders are irrationally ignorant‘
According to a recent survey by Independent Reserve, 40% of Singaporeans own crypto. Among them, around 76% have two or more different types. According to the report’s highlights,
“Bitcoin remained the most popular cryptocurrency, with 78% of investors holding it. 50% hold Ethereum and the third most popular cryptocurrency is Dogecoin, held by 25% of investors.“
In addition, general awareness remains high. Per IR, 90% of Singaporeans have heard of at least one crypto, while 87% have heard of Bitcoin. Furthermore, around 47% plan to buy crypto in Singapore in the next 12 months.
The chief executive of the Monetary Authority of Singapore – Ravi Menon – said at an event on Monday that despite warnings and measures, research shows that consumers are increasingly trading crypto globally and in Singapore. According to him, they are attracted by the prospect of sharp price increases.
He said,
“They appear to be irrationally ignorant of the risks of cryptocurrency trading.”
He said that “adding frictions” on retail access to cryptos such as Bitcoin was an area that MAS was considering. Elaborating on what the same could entail, the minister said a seminar titled “Yes to Digital Asset Innovation, No to Cryptocurrency Speculation,”
“These may include customer suitability tests and limiting the use of leverage and credit facilities for cryptocurrency trading.”
Menon said MAS would seek public feedback on its proposals by October. He added that reviews are ongoing by regulators globally.
As recently reported, the crypto-centric regulatory landscape in Singapore is heating up. From limiting the involvement of retail investors to explicitly denying crypto license applications, MAS is now more brutal than ever. Further raising its authority, the regulator had also urged crypto platforms to present data on their business activity towards the end of last week.
Read more: Will crypto firms survive Singapore’s regulatory heat?
