Singapore might introduce stricter regulations for the retail crypto industry

The Monetary Authority of Singapore may propose more stringent regulations for retail crypto market players, said managing director Ravi Menon on Monday.

During the Green Shoots Seminar, a fintech-focused event co-hosted by the city-de state’s facto central bank, the de facto central bank sought to distinguish how the MAS has supported work on distributed ledger technology and areas such as tokenization while warning against speculative market activities.

Singapore is often seen as a leader in the crypto business due to its licensing and regulatory structure, although the restrictions concentrate on money laundering and terrorism funding issues rather than consumer protection. Menon said last month that reviews and public engagements are ongoing to tighten consumer regulation and that MAS plans to comment on potential actions in the coming months.

Menon, according to a transcript of his speech, said that “adding frictions to retail access to cryptocurrencies is something we are considering.” 

Menon said that prohibiting retail access to cryptocurrency is unlikely to succeed since access is simple and crypto is global.

“Cryptocurrencies have taken on a life of their own outside of the distributed ledger, and this is the root of the crypto world’s troubles,” said Menon. “Cryptocurrencies are actively traded and frequently speculated upon, with values unrelated to the economic value behind their usage on the distributed ledger. Due to the significant price volatility of cryptocurrencies, they are unsuitable as a currency or investment asset.”

“The most promising use cases of digital assets in financial services are cross-border payment and settlement, trade finance, and pre-and post-trade capital market activities,” he said, adding that the authority aims to “anchor in Singapore crypto players who can add value to our digital asset ecosystem and have strong risk management capabilities.”

Also Read: Dubai Sets Promotion Guidelines For Crypto

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