Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Murtuza Merchant

Singapore Considering Additional Safeguards On Cryptos: 'Not Suitable For The Retail Public'

The Monetary Authority of Singapore (MAS) is considering the introduction of additional consumer protection safeguards on cryptocurrencies, the country’s Minister in charge of MAS Tharman Shanmugaratnam said.

Shanmugaratnam, responding to a written query from Murali Pillai, a Member of Parliament, saying the additional safeguards for consumers would include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.

In January this year, the MAS ceased marketing and advertising crypto services in public areas and restricted trivializing crypto trading that could hurt traders and investors.

Additionally, all entities dealing in cryptos are bound to adhere to the MAS’s rules, including removing crypto ATMs from public places and taking down advertisements from public transport venues.

“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,” the minister said. “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.”

Also Read: If You're Thinking Of Catching The Bitcoin Falling Knife, Here Are 3 Reasons To Consider Waiting

Ravi Menon, Managing Director of the MAS, had recently termed cryptos an investment in a prospective future and that not getting into the game may leave Singapore behind.

“With crypto-based activities, it is basically an investment in a prospective future, the shape of which is not clear at this point. Not getting into the game might leave Singapore behind, but now, the country has a head start and better understands its benefits as well as its potential risks,” he said.

Menon had also asserted that considering Singapore’s reputation as a global wealth hub, the country had to bolster its safeguards to combat the risks related to illicit financial flows.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.