Singapore is working on new regulations that would make it more difficult for retail investors to trade cryptocurrencies such as Bitcoin BTC/USD, Ethereum ETH/USD and Dogecoin DOGE/USD.
What Happened: Ravi Menon, the chief of the Monetary Authority of Singapore (MAS), said that retail investors are increasingly trading in cryptocurrencies globally, attracted by the prospect of a sharp price increase — while adding that they "seem to be irrationally oblivious about the risks of cryptocurrency trading."
At an event on Monday, Menon said the Monetary Authority was working on "adding frictions" on retail access to cryptocurrencies, Reuters reported.
"These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading," he added.
Earlier, with a significant regulatory crackdown on cryptocurrencies all over Asia, Singapore had emerged as a "safe haven" for investors and crypto exchanges. Binance CEO Changpeng "CZ" Zhao and Ethereum co-founder Vitalik Buterin were among some of the top crypto market leaders that have made it their home base because of the crypto-friendly regulations. However, the Singapore authorities' intensified scrutiny of cryptocurrency-related companies has triggered worries about tighter regulations.
Menon said MAS would seek public feedback on its proposals by October before implementing them.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
