Crypto investors in Singapore may soon be banned from leveraged trading

Gamza Khanzadaev

Singapore Monetary Authority Considers Restrictions on Individual Participation in the Crypto Market

Today, the Chief Minister and Head of the Monetary Authority of Singapore, in his response to a question from MPs regarding future restrictions on crypto trading platforms and high-risk assets, said that the MAS (Authority Singapore Currency) may impose restrictions on the participation of individuals. in the crypto market, as well as the implementation of rules related to margin trading.

In his address to Parliament, Tharman Shanmugaratnam also said that over the past five years, Singapore has consistently pursued a policy of restricting cryptocurrency transactions for citizens, prohibiting advertising of cryptocurrency services in public places, as well as the installation of crypto-automata there.

According to the Minister, while all cryptocurrency companies in Singapore must follow the January MAS guidelines, the regulator under the Payment Service Act (PS) may impose additional requirements in order to protect customers and to ensure the stability of the financial system. At the same time, the MAS chief called for universal global cooperation on the issue of crypto market regulation, referring to the fact that cryptocurrencies themselves have no borders.

Singapore’s stance on crypto

Despite such a strict attitude, Singapore has long held and continues to hold high places in the ranking of the most crypto-friendly countries, only losing the top spot to Germany in April. At the same time, authorities and officials in Singapore have consistently stated that investing in cryptocurrencies is not for everyone and the window of opportunity should be narrowed.

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The situation was particularly heated during the collapse of Terra and its LUNA and UST tokens, during which many Singaporeans lost their savings. The situation with the liquidation of the Three Arrows Capital fund, which was also reprimanded by MAS for providing false information, also did not add to the optimism.

Despite the fact that Singaporean investors may lose some options in the crypto market, it looks like Singaporean banks will take the opportunity to try and build something that meets MAS requirements and sits at the intersection of centralized finance and decentralized.