SINGAPORE: The chief of Singapore’s central bank said the nation is considering brand new measures that will make this more difficult for retail investors to business cryptocurrencies at a time if they seem to be “irrationally oblivious” about the risks.
“Adding frictions on retail entry to cryptocurrencies is an region we are contemplating, ” Ravi Menon, controlling director of the Financial Authority of Singapore (MAS) said in a seminar on Mon (Aug 29).
“These may include consumer suitability tests and restricting the use of influence and credit amenities for cryptocurrency investing, ” he added.
The PORÉM in January released guidelines to limit cryptocurrency trading service providers from promoting their solutions to the public , as part of its tries to shield retail investors from potential risks.
Mister Menon said in the speech on Mon that MAS regards cryptocurrencies as unsuitable for use as money and as “highly hazardous” for retail investors.
But considering that the cryptocurrency globe is borderless, banning retail access is just not likely to work, he or she said.
“With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies, ” he observed, adding that a multi-pronged approach is certainly therefore required to safeguard consumers from damage.
“MAS is actively involved in worldwide regulatory reviews to enhance market integrity and customer protection within the digital asset room, ” he mentioned.
“Second, the has an important role within co-creating sensible procedures to protect consumer interests.
“MAS continues to be sharing its concerns with the industry and inviting views on possible measures to minimise harm to consumers, ” Mr Menon said, adding the authority will openly consult on the proposals by October this year.
He furthermore urged consumers to take responsibility and physical exercise judgment and extreme caution.
“No amount of MAS regulation, global co-operation, or sector safeguards will shield consumers from failures if their cryptocurrency holdings lose value, ” said Mr Menon.