Singapore is reported to consider introducing new pieces of legislation that aim to protect the public from cryptocurrency trading in the coming days.
Singapore Considers New Restrictions on Crypto Trading
Global markets are teetering due to multiple factors, inflation and economic growth slumping. Cryptocurrency markets were not left unscathed, unfortunately. And as we saw the biggest crypto firms tumble, Singapore is watching closely. Reports say that Singapore is considering new cryptocurrency trading restrictions to protect the general population. Retail trading limits and the use of leverage in bitcoin transactions may be among them.
The news comes after the government repeatedly warned that cryptocurrencies are inappropriate retail investments for the general public because of their "sharp speculative price movements."
Recent market developments have clearly illustrated the risks, with the values of many cryptocurrencies plummeting dramatically, according to Tharman Shanmugaratnam, Senior Minister and Minister in Charge of the Monetary Authority of Singapore (MAS). In a written response to a parliamentary inquiry on Monday, he stated that the MAS had published cautious remarks concerning cryptocurrency investments since 2017. Tharman said that the industry regulator had already gone farther than most others, stating that MAS in January limited the marketing and promotion of cryptocurrency services in public places and prohibited the representation of bitcoin trading as easy.
Singapore Still Believes in the Need to Develop Technology Underlying Crypto
He said that digital payment token service providers have followed the requirements, which included removing bitcoin ATMs and marketing from public spaces and public transportation venues.
According to the country's Payment Services Act, MAS is empowered to impose additional measures to promote improved consumer protection, financial stability, and the efficiency of its monetary policies, according to the minister. Singapore, however, has emphasized the necessity of fostering the development of underlying technology usually linked with cryptocurrencies, particularly blockchain.
Heng Swee Keat, Deputy Prime Minister and Coordinating Minister for Economic Policies stated last month that measures were needed to maximize the promise of new technology while limiting hazards. For example, he stated that a consortium was formed to ensure the proper use of artificial intelligence (AI) in the financial sector, which resulted in the publication of whitepapers and toolkits to help guide the industry.
The same strategy should be used to maximize the benefits and minimize the drawbacks of Web 3.0 innovations, according to Heng, citing distributed ledgers and tokenization as examples of how to achieve transparency and cost reductions. According to research published in August, 67 percent of Singaporean personal investors owned cryptocurrencies, with 78 percent owning Ethereum and 69 percent owning Bitcoin.
While cryptocurrencies were inappropriate for retail investing because of their wild swings, he stated that the underlying blockchain technology has the potential to simplify and enhance wholesale cross-border transactions. In May, MAS revealed its intentions to explore asset tokenization use cases and investigate the possibility of autonomous trading driven by blockchain technology. Efforts would include the creation of interoperable networks to allow digital asset trading, as well as an assessment of the rules required to protect against any hazards.
