Singapore: “MAS ahead in limiting crypto marketing,” but tighter curbs expected
The minister responsible for the Monetary Authority of Singapore (MAS) recently revealed in a parliamentary response that the agency is considering tighter curbs in the crypto sector, despite being ahead of several countries in terms of regulation.
Minister Tharman Shanmugaratnam said: “MAS has carefully considered the introduction of additional consumer protection. These may include setting limits on retail participation and rules for the use of influence in transactions in cryptocurrencies.”
MAS introduced stricter guidelines in January
Earlier in January this year, MAS had issued guidelines to discourage trading in cryptocurrencies by the general retail investor. The agency had warned that trading in digital assets is “very risky and not suitable for the general public”.
And now the recent weakness of the cryptocurrency market, Shanmugaratnam, underlines, “Since 2017, MAS has consistently warned that cryptocurrencies are not suitable investments for retail … Recent events have clearly demonstrated the risk, with the prices of several cryptocurrencies falling sharply.”
This week, the Singapore-based crypto-lending platform Vauld became the latest platform to freeze withdrawals, deposits and trade. In the midst of volatile market conditions, the supplier is also moving towards financial restructuring.
In the past, events such as the Terraform-led collapse and the liquidation of Three Arrows Capital had contributed to the market’s financial problems. So much so that MAS had come forward to reprimand the hedge fund Three Arrows Capital for misinformation and other breaches, such as exceeding the limit for total assets.
New national and global crypto framework
The Minister also noted that MAS went further than most regulators in restricting public marketing and advertising of cryptocurrencies, securing disclaimers of responsibility for their risks, issuing guidelines for the sector and removing cryptocurrency ATMs from public areas, among other things.
That said, the response also reiterated the warning that “People can lose most of the money they have invested” in the risky asset class.
But despite the tighter supervision, the island nation aims to control the cryptocurrency in the medium to long term by regulating the sector.
And for that, the official emphasized that the Payment Services Act empowers MAS to impose further measures on DPT service providers to ensure “better consumer protection, maintain financial stability and ensure the effectiveness of monetary policy”, apart from the main focus on limiting money laundering. and the risk of terrorist financing.
In addition, the Minister also suggested that the regulatory issue of the virtual sector be discussed in various international standardization bodies, when he asked for global coordination and cooperation for rule design.
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