Singapore Considering Further Restrictions on Crypto

The Monetary Authority of Singapore (MAS) is currently considering the implementation of additional restrictions on how the general public handles cryptocurrencies, a senior government minister said on 4 July.

According to Singapore’s parliamentary records, Tharman Shanmugaratnam — the minister in charge of MAS — said the central bank was “carefully considering” placing limits on crypto investors. The statement was made in response to a question from parliament member Murali Pillai, who asked whether the MAS was intending to further restrict crypto trading platforms. Shanmugaratnam said:

“Since 2017, MAS has consistently warned that cryptocurrencies are not suitable investments for the retail public. Most cryptocurrencies are subject to sharp speculative price swings. Recent events have vividly demonstrated the risks, with prices of several cryptocurrencies falling drastically.”

He noted that one of the moves the central bank could take is to “place limits on retail participation”, as well as introduce new rules on the use of leverage in crypto transactions. Shanmugaratnam also said there was a need for “regulatory coordination and cooperation globally” in order to protect investors, given the borderless nature of the crypto market.

This will not be the first time the MAS has placed limitations on crypto, with the central bank barring crypto service providers from advertising and marketing their services in public spaces in January. It was also behind the regulations that shut down the crypto ATMs in Singapore later that month. Despite these actions, the MAS continues to give the regulatory green light to crypto companies in Singapore, with the latest to be granted in-principle license being Crypto.com.