Singapore regulators decided to impose restrictions on retail investors from purchasing cryptocurrency. The Chief of MAS (Monetary Authority of Singapore) -Ravi Menon stated that they have no plans to impose a ban on crypto and digital asset trading. However, the rules for retail buyers will become stricter.
At a Monday, August 29th seminar, Menon suggested that the Singapore Authority plans on conducting suitability tests and restricting the use of credit facilities and leverage that enable retail investors to trade on cryptocurrencies.
According to the MAS, Menon said that crypto is unsuitable for the use of money, and retail traders should be encouraged to stay away from it as it can be hazardous to them. However, as noted by the chief of MAS, the crypto and blockchain industries are decentralized and nothing can be done to ban them. However, the imposition of stringent regulations may deter retail investors.
Singapore's financial regulator just said that they are considering restricting retail access to crypto trading… but at the same time acknowledged (rightfully) that it is impossible to ban retail from trading crypto.
So… they are just going to do nothing?
— wassielawyer (@wassielawyer) August 29, 2022
Crypto Investors are Frustrated because of the Licensing Procedure of MAS
When Mr. Menon was questioned about the frustration showcased by retail crypto investors in Singapore, he commented that the MAS cannot negotiate on the due diligence procedure, making it easier for digital asset enthusiasts.
He further said that a large number of applications filed by retail investors are pending and yet to be sanctioned. However, priority is being given to license applicants who can contribute to the fintech development of Singapore and possess a solid risk management framework.
The MAS is being criticized by retail investors for making its stance unclear on the operation of the digital asset industry. Also, the application for a license to trade in cryptocurrencies has become extremely tedious.