According to a Bloomberg report, Singapore has proposed additional regulations to reinforce its stance against retail speculation in crypto assets. The new measures include prohibiting individual investors from borrowing to trade and disallowing digital payment token service providers from offering incentives for retail trading, as well as financing, margin, or leverage transactions.
The Monetary Authority of Singapore (MAS) announced these regulatory changes in a statement on Thursday, expanding their scope to cover all investors, regardless of residency.
Singapore Expands Crypto Regulations
Per the report, the MAS will gradually phase in the expanded measures starting from mid-2024 to protect retail investors from potential risks associated with cryptocurrency trading.
The central bank aims to mitigate the impact of “high-profile crypto blowups,” such as the recent collapse of hedge fund Three Arrows Capital (3AC), by distancing itself from speculative activities in digital assets.
Previous measures to restrict retail participation, including plans to ban lending and staking, have been introduced as part of Singapore’s ongoing efforts to ensure a “safer crypto market.”
Under the new guidelines, digital payment token service providers will also be prohibited from accepting locally issued credit card payments. Incentives like referrals, learn-and-earn programs, and similar promotions will also fall under the restrictions.
Investors Advised To Avoid ‘Unregulated Crypto Entities’
The MAS emphasized that even with these proposed measures, customers should remain cautious as digital asset trading inherently carr
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Author: Ronaldo Marquez
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