Singapore considers tightening cryptocurrency investing by retail traders

Singapore considers tightening cryptocurrency investing by retail traders


The Financial Authority of Singapore building in Singapore, on Wednesday, Oct. 27, 2021. The chief of Singapore’s central bank mentioned the metropolis-point out is contemplating new actions that will make it extra difficult for retail investors to trade cryptocurrencies at a time when they seem to be “irrationally oblivious” about the threats.

Wei Leng Tay | Bloomberg | Getty Pictures

Singapore is preparing to roll out new polices that will make it additional challenging for retail investors to trade cryptocurrencies at a time when they feel to be “irrationally oblivious” about the threats, its central financial institution main explained.

Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), explained at an event on Monday that irrespective of warnings and measures, surveys show that shoppers are progressively buying and selling in cryptocurrencies globally, not just in Singapore, attracted by the prospect of sharp rate improves.

“They appear to be irrationally oblivious about the risks of cryptocurrency trading,” he stated.

“Adding frictions” on retail accessibility to cryptocurrencies was an location the MAS was considering, he mentioned.

“These may perhaps involve customer suitability assessments and proscribing the use of leverage and credit history amenities for cryptocurrency trading,” he included at a seminar titled “Certainly to digital asset innovation, No to cryptocurrency speculation.”

Singapore’s welcoming approach has helped the fiscal hub attract digital asset products and services-associated firms from China, India and in other places in the very last handful of a long time, creating it a big middle in Asia.

Examine much more about tech and crypto from CNBC Professional

But the latest defaults of some international cryptocurrency-connected corporations dependent in Singapore, quite a few of which are not issue to the economic regulator’s suggestions on shopper protection or market place perform, has triggered worries about tighter regulation.

The MAS will seek out community comments on its proposals by Oct, Menon claimed, adding that reviews are ongoing by regulators globally.

In January, the MAS issued guidelines to limit cryptocurrency buying and selling company companies from marketing their solutions to the public. Read full tale

Cryptocurrencies have plunged this 12 months, as U.S. interest price boosts and runaway inflation prompt traders to ditch riskier belongings.

“MAS’ facilitative posture on digital asset pursuits and restrictive stance on cryptocurrency speculation are not contradictory,” Menon stated.

U.S. crypto exchange Gemini and Huobi, a crypto trade originally targeted on China, are amid those with a important presence in Singapore.

About 180 crypto corporations used for a crypto payments license to the MAS in 2020 less than a new regime but Singapore has handed out only about two dozen licenses so considerably immediately after an elaborate owing diligence process that is nonetheless heading on.



Resource

Investors assess their U.S. exposure as uncertainty creates concerns — and opportunities
World

Investors assess their U.S. exposure as uncertainty creates concerns — and opportunities

As investors assess whether the U.S. is still a good place to put their money, the list of events in the country making global headlines just keeps growing. Front of mind for investors is both U.S. President Donald Trump’s tariffs regime — with much anticipated talks between the U.S. and China taking place in London […]

Read More
World’s biggest sovereign wealth fund says EU markets need single regulator
World

World’s biggest sovereign wealth fund says EU markets need single regulator

The Norges Bank, Norway’s central bank, in Oslo, Norway, on Tuesday, Oct. 17, 2023. Bloomberg | Bloomberg | Getty Images The world’s largest sovereign wealth fund will this week tell the European Union that “better and simpler regulation” is key to the markets reforms it urgently needs. “European markets over time have fallen behind in […]

Read More
Nvidia’s Huang says programming AI is now like training a person
World

Nvidia’s Huang says programming AI is now like training a person

Nvidia CEO Jensen Huang says artificial intelligence is the “great equalizer” because it lets anyone program using everyday language. Speaking at London Tech Week on Monday, Huang said that, historically, computing was hard and not available to everyone. “We had to learn programming languages. We had to architect it. We had to design these computers […]

Read More