Singapore’s financial watchdog is considering further restrictions on crypto

by · July 4, 2022

The Monetary Authority of Singapore, or MAS, has “carefully considered” adding restrictions that could affect how retail investors handle crypto, according to one of the government’s senior ministers.

According to parliamentary documents published on Monday, Singapore’s senior minister and MAS leader Tharman Shanmugaratnam said the financial watchdog could consider “setting limits on retail participation” for crypto investors, as well as introducing rules for using influence for crypto transactions. Shanmugaratnam also called for regulatory clarity among financial regulators around the world, “given the boundless nature of cryptocurrency markets.”

In January, MAS barred cryptocurrency service providers from advertising or marketing in public spaces, and was behind regulations to close cryptocurrency banks in Singapore – services that apparently show that “cryptocurrency trading is portrayed in a way that downplays risk.” According to MAS, the country’s Payment Services Act authorizes the regulator to impose further restrictions on crypto service providers “to ensure better consumer protection, and to maintain financial stability and ensure the effectiveness of monetary policy.”

The financial watchdog said that “recent events” – probably referring to extreme volatility in the prices of major cryptocurrencies including Bitcoin (BTC) – highlighted the risk of cryptocurrencies. On June 30, MAS reprimanded Three Arrows Capital for allegedly “providing false information and exceeding assets below the management threshold”. The Singapore-based company may be liquidated due to reports that it failed to meet margin calls from lenders.

Related: Why Singapore is one of the most crypto-friendly countries

In the midst of the market downturn, MAS continues to consider giving the regulatory green light to companies that handle digital assets in Singapore. In June, the financial regulator gave Crypto.com an approval in principle, so that the crypto exchange could offer certain payment services in the country. Cryptocompanies including Bitstamp Limited, Coinbase Singapore and Gemini Trust have been granted exemptions for a license in Singapore, while Binance announced plans to close its operations in the country in February.