The Monetary Authority of Singapore (MAS), which serves as Singapore’s central bank, is considering implementing more stringent regulations for retail investors in cryptocurrencies. The head of the central bank stated that cryptocurrencies are not fit for use as money and pose a high risk for ordinary investors. “MAS sees cryptocurrencies as unsuitable for use as money,”
Retail Crypto Investors in Singapore May Soon Have to Comply with New Regulations
At the Green Shoots event on Monday, the managing director of the Monetary Authority of Singapore (MAS), which is Singapore’s central bank, Ravi Menon, discussed the various regulatory approaches being considered for cryptocurrencies.
He listed five areas of risk that are associated with digital assets, all of which are the focus of the regulatory approach taken by the central bank. They are working to prevent the laundering of money and the funding of terrorist organizations; they are managing risks associated with technology and cyberspace; they are protecting retail investors from being harmed; they are keeping the promise of stability in stablecoins; and they are mitigating potential risks to financial stability.
The head of the central bank mentioned:
He stressed that cryptocurrencies do not possess the three fundamental features of money: a means of exchange, a store [of] value, and a unit of account.
Menon highlighted that individual investors will find it more difficult to trade cryptocurrencies as a result of the new regulatory measures that are being implemented. According to the information provided by him, “Adding frictions on retail access to cryptocurrencies is an area we are investigating.” He elaborated as follows: However, the official from the central bank emphasized that “the world of cryptocurrencies is borderless.” According to his opinion, Singaporeans have access to any number of cryptocurrency exchanges around the world and are able to buy or sell any number of cryptocurrencies simply by using their mobile phones.
Menon came to the conclusion that Singapore is one of the most favourable and facilitative jurisdictions for digital assets as a result of the development strategy implemented by MAS. “At the same time, the Monetary Authority of Singapore’s (MAS) expanding regulatory approach makes Singapore one of the most thorough in regulating the risks of digital assets, and among the harshest in areas such as discouraging retail investments in cryptocurrencies,”