Singapore's Monetary Authority (MAS) is weighing new limits for cryptocurrency retail investors as the market is still flooded with shady schemes and suffers from volatility.
Subscribe to our Telegram channel to get daily short digests about events that shape the crypto world
Ravi Menon, Managing Director of the MAS, said at Green Shoots Seminar opening that the financial regulator is considering developing suitability tests for retail investors and restricting the use of leverage and credit facilities for cryptocurrency trading.
Menon acknowledged though that banning retail access to cryptocurrencies "is not likely to work." He pointed out:
"The cryptocurrency world is borderless. With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies."
The MAS head emphasized that the crypto market still includes risks of wash trades that may mislead and deceive market participants about prices or trading volumes. It remains unclear though when exactly the MAS plans to implement new protective measures.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange