MAS is said to be considering additional restrictions on crypto services in Singapore.
In January, the Monetary Authority of Singapore (MAS) stated that all crypto service providers were banned from advertising digital asset-related services in public. The financial watchdog was also behind the decision or regulation that demands that all crypto ATMs are shut down in the country. In a recent development, MAS has been said to be considering additional restrictions on crypto services in Singapore.
According to Singapore senior minister and MAS chair Tharman Shanmugaratnam, additional safeguards including placing limits on retail participation, as well as rules to guard the use of leverage on crypto transactions are being considered. The intention is to ensure that there is a high level of protection for consumers.
“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,” he said. “These issues are being discussed at various international standard-setting bodies where MAS actively participates,” he added.
Shanmugaratnam’s statement came after he was asked by a member of parliament Murali Pillai whether the regulator has considered further restrictions on crypto trading platforms.
MAS has been very consistent in its crypto warnings since 2017, with Shanmugaratnam stating that “most cryptocurrencies are subject to sharp speculative price swings.” Using the recent crypto market bloodbath caused by the Terra ecosystem crash as a reference, he believes that the constant warnings to the retail public are justified.
According to MAS, their recent decisions on the crypto market are constitutional and backed by the Payment Services Act. This Act empowers them to impose additional restrictions on crypto service providers as long as it protects consumers, maintains financial stability, and “safeguards the efficacy of monetary policy”. It can be recalled that MAS recently took action against Three Arrows Capital for exceeding the threshold of assets under management and providing false information.
“MAS today reprimanded Three Arrows Capital Pte. Ltd. for providing false information to MAS, and exceeding the assets under management threshold allowed for a registered fund management company,” announced MAS.
Regardless of their stringent stance against crypto service providers, the financial regulator gave in-principle approval to Crypto.com permitting them to provide certain payment services in Singapore.
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