Following the recent price collapses in the crypto, headed by the failure of digital assets lending platforms, global regulators have felt the need to toughen regulatory oversight of the market. The Monetary Authority of Singapore (MAS) is also looking in that direction to offer more protection to retail investors, as an outright ban is “not likely to work.”
Singapore Won’t Ban Crypto But Wants Tougher Rule
According to a report by Bloomberg, MAS is weighing the option of advancing its regulatory parameters for crypto firms to protect consumers trading digital currencies. The regulator aims to achieve this by implementing several measures like mandatory suitability testing on customers and reduction of leverage size and credit facilities accessible to retail users.
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.MAS’s Managing Director, Ravi Menon.
Although Menon believes that cryptocurrencies are volatile and “highly hazardous” for retail investors, he doesn’t push for an outright ban on the emerging assets. He also thinks that digital assets and blockchain offer economic potential.
Singapore to Enforce More Regulatory Policies
The MAS official is of the view that the country should implement more regulatory policies to govern the emerging assets and equally protect retail users from associated risks.
Notably, the MAS raised the bar on cryptocurrency this year. It limited the involvement of retail investors and also rejected applications for crypto licenses. Furthermore, it instructed crypto platforms based in Singapore to provide more data about their business activity and holdings, following the fall of lending platforms like 3AC, Hodlnaut, etc., which operated from the country.