The Monetary Authority of Singapore (MAS) is weighing the option of propelling ways of protecting consumers trading cryptocurrencies through new measures like suitability tests.
Speaking at an event on Monday, Ravi Menon, the managing director at the MAS, hinted:
“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.”
As the Republic of Singapore’s central bank and financial regulatory authority, the MAS carries out various statutes about securities, insurance, banking, and money.
During the event attended by crypto industry players, Menon emphasized the need to boost regulations in the sector. He pointed out:
“Banning retail access to cryptocurrencies is not likely to work. The cryptocurrency world is borderless. There is greater impetus now among global regulators to enhance 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.
Nevertheless, Menon had earlier reiterated that Terraform Labs, Three Arrows Capital, and the Luna Foundation Guard were unlicensed to operate in Singapore, Blockchain.News reported.
The MAS started tightening digital asset rules earlier this year, with crypto companies being required to be licensed locally, even those operating overseas.
Menon also reiterated that the volatility linked to cryptocurrencies made them unsuitable for use as money.
Image source: Shutterstock