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Singapore Clamps Down On Crypto Activities, Set to Release More Stringent Regulations

Sigapore crypto clamp down

The Singaporean authorities are working on a new action plan and regulations that they believe would make it challenging for retail investors to trade digital assets. The government is making the move as it believes that retail investors aren’t very knowledgeable about the risks that come with cryptocurrency.

Speaking at an event on Monday, the managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, stated that despite government warnings and stringent measures put in place, retail consumers in the country have continued to trade cryptocurrencies, primarily due to the allure of sharp price increases. 

Ravi Menon mentioned that retail investors in the country are oblivious to the risks of crypto trading, so the government is working on adding frictions on retail access to digital assets. 

Some restrictions being considered include customer suitability tests and limiting access to leverages and credit facilities for digital assets trading. 

Although the country’s receptive approach to cryptocurrencies has attracted many cryptocurrency companies from China, India, and other regions, the government is working assiduously to regulate the crypto space in the country. Note that the leading U.S-based crypto exchanges Gemini and Houbi, primarily focused on China, have established a strong presence in Singapore, owing to the favorable crypto climate in the country. 

The way forward

As the government works on more stringent regulations to regulate crypto activities in the country, it isn’t doing this blindly. Reports suggest that the MAS will submit its proposals by October to seek public feedback. The MAS reported that it is currently reviewing its line of actions in partnership with other regulators. 

It would be recalled that the MAS issued some guidelines in January, preventing crypto providers from marketing their services to the public. Meanwhile, falling crypto prices, skyrocketing inflation, and increasing interest rates in the U.S. have forced many investors to ditch riskier assets.

Following the failure of many global cryptocurrency firms in the country to meet their obligations, the government is now clamping down on crypto activities as it works on more stringent regulations to protect retail investors.

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