Country's crypto trading activity.
On Monday, August 29, Singapore's central bank president stated that the city-state is mulling new regulations to make crypto trading even more difficult for individual investors.
Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), stated in a seminar on Monday that introducing frictions to retail access to cryptocurrencies is something that the MAS is considering. These may include client suitability testing and restrictions on the use of leverage and credit facilities for crypto trading.
He went on to say that individual investors have been "irrationally ignorant" to the risks of cryptocurrency trading. In January of this year, the MAS released guidelines limiting crypto trading service providers' access to promote their services to the general public. This was done to protect retail investors from the volatility of the cryptocurrency market.
MAS Making a Move on Crypto Regulations
In response to the ongoing liquidity crisis and withdrawals, particularly in the instance of troubled hedge fund Three Arrows Capital, the MAS is taking fresh steps to bring crypto regulations into the nation.
Last week, Singapore's central bank delivered detailed questionnaires to all enterprises holding MAS' Digital Payment Token licenses. As per the report, the goal was to collect "highly granular information" on the business activities and assets of the evaluated crypto companies.
The MAS aims to examine the financial soundness and interconnectedness of crypto companies. This year, Three Arrows Capital, a bankrupt hedge firm, has dealt a significant blow to the cryptocurrency market.
The MAS is looking for clarification from crypto companies such as top lending and borrowing counterparties, top tokens owned, top tokens staked via decentralized finance protocols, and loan amounts.
Last month in July, MAS chief Ravi Menon also stated that they had been working on a regulatory framework. This framework will cover consumer protection, market behavior, and stablecoin reserve backing.
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