The Central bank of Singapore, the Monetary Authority of Singapore (MAS) is fastening its grip on retail crypto trading. Considering this, MAS is likely to impose several regulations that would checkmate the leverage on crypto transactions.
In a parliamentary sitting held on Monday, the financial watchdog was accosted with questions concerning its plan to restrict crypto trade. The Minister in charge of MAS, Mr Tharman Shanmugaratnam responded stating the probability of the restrictions.
MAS Restrictions: a Sign of Persistence in Regulation of Crypto Trading
According to his response, MAS invariably shows concern for cryptocurrency investment on the premise that it is a risky venture. This is very much attributed to the volatility of the market which causes prices to fluctuate. Presently, the prevalent condition of the market further endorses MAS’s claim.
Prices of major cryptocurrencies have dwindled and their investment sentiments have become bearish over the past few months. With Bitcoin and Ethereum (ETH) leading the losses, most digital currencies have seen their valuations halved.
At the beginning of the year, MAS restricted the advertisement and promotion of cryptocurrencies, especially in public places. Public digital currency ATMs were removed, and advertisements in transportation parks were also pulled off.
The watchdog also disallowed the trading of crypto in a manner that fails to adequately project the risks involved. MAS encouraged investors and customers to be fully equipped with information about their intended investment.
Also, the bill to issue licenses to all authorized virtual assets providers in the country was passed by the parliament. The Singaporean Parliament in turn made the MAS accountable for the enforcement of the provisions of the bill.
Invariably, the financial regulator is responsible for creating a legal structure which regulates the activities of these virtual asset providers. While the digital asset providers are obliged to comply with the laid framework.
Shanmugaratnam concluded by saying that MAS is carefully considering additional methods of safeguarding customers. Further action is the limitation on retail participation, and other strategies might come up in future.
As a further warning to users, MAS reiterated the volatile nature of digital assets and the high level of risk involved in trading cryptocurrencies.