The Monetary Authority of Singapore is weighing the possibility of promoting ways to protect consumers trading cryptocurrencies New measures, such as the suitability test, are available.
Speaking Ravi Menon, managing director of the MAS, spoke at an event Monday.
“The MAS’ new rules may include customer suitability tests and cutting the use of leverage and credit facilities by retail investors for trading these digital assets.”
The MAS is the central bank of Singapore and the financial regulator. It enforces various statutes regarding securities, insurance, banking and money.
Menon stressed the importance of enhancing regulations during the crypto industry event. Menon highlighted:
“Banning retail access to cryptocurrencies is not likely to work. The cryptocurrency industry is not governed by borders. Global regulators have greater motivation to strengthen regulations in this space. MAS will also do so.”
The absence of global oversight has become a challenging issue amid the pitfalls experienced by various crypto companies, which triggered a $2 trillion market downturn.
For instance, an embattled cryptocurrency hedge fund, Three Arrows Capital (3AC), filed for Chapter 15 bankruptcy in the United States of America in July. The company’s woes were ignited by the collapse of LUNA-UST, given that it had a significant amount of exposure.
Menon had previously stated that Terraform Labs and Three Arrows Capital were not licensed to operate in Singapore. Blockchain.News reported.
The MAS tightened digital asset regulations earlier in the year. Crypto companies are now required to have local licenses, even if they operate overseas.
Menon reiterated that cryptocurrencies were unsuitable to be used as money because of their volatility.
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