A member of the Singapore Parliament has inquired as to whether, or not, the government intends on further restrictions on crypto trading. Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS (the Monetary Authority of Singapore) has issued a response.
Shanmugaratnam states that this past January, MAS incorporated rules that “went further than most other regulators” and compelled trading platforms not to trivialize risk.
He explains:
“DPT [Digital Payment Token] service providers are currently regulated under the Payment Services Act (PS Act) primarily for money laundering and terrorism financing risks. But the PS Act also empowers MAS to impose additional measures on DPT service providers to ensure better consumer protection, and to maintain financial stability and safeguard the efficacy of monetary policy.
MAS has been carefully considering the introduction of additional consumer protection safeguards. These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies. Given the borderless nature of cryptocurrency markets, however, there is a need for regulatory coordination and cooperation globally. These issues are being discussed at various international standard setting bodies where MAS actively participates.
MAS reiterates its warning: cryptocurrencies are highly risky and are not suitable for the retail public. People can lose most of the money they have invested, or more if they borrow to purchase cryptocurrencies.”
The decline in crypto markets along with the collapse of certain tokens, like TerraUSD, and platforms like Three Arrow Capital, have raised concern regarding crypto market risk and contagion. Expectations are for greater regulation around the world as policymakers grapple with a difficult economy and volatile crypto and traditional markets.
