Kenne Michael 
Singapore regulators are developing new restrictions to limit speculative trading among retail crypto players.
One of the most significant proposals prohibits retail investors from obtaining funds for crypto trading.
Singapore Central Bank on Crypto Rules
According to Singapore’s central bank – the Monetary Authority of Singapore – companies providing digital payment tokens won’t be allowed to offer rewards for regular people trading cryptocurrencies or provide loans, margin trading, or leverage transactions.
Additionally, credit card payments issued in Singapore are not accepted.
Currently applicable to all investors, not just those based in Singapore, these regulations encompass learning programs and referral bonuses.
The MAS intends to implement these modifications progressively from mid-2024.
Singapore, a prominent crypto hub in Asia, is implementing measures to mitigate its vulnerability to digital asset speculation in the wake of events such as the bankruptcy of the Three Arrows Capital hedge fund.
Prior efforts to restrict retail involvement including contemplating prohibitions on lending and staking.
Nevertheless, according to Ho Hern Shin, the Deputy Managing Director for Financial Supervision at MAS, the proposed measures are insufficient to completely safeguard consumers against the high risk and inherent speculation of cryptocurrency trading.
He emphasized that dealing with unregulated entities, including those based overseas, should be avoided.
After receiving feedback on its digital payment token service proposals, unveiled in October of the previous year, the Monetary Authority of Singapore (MAS) has issued the concluding guidelines.
Similar to the responsibilities placed on banks, cryptocurrency firms are also expected to guarantee critical systems’ high availability and recoverability.
Following the MAS’s guidelines, these crypto firms should also implement procedures for handling consumer complaints and resolving disputes.
MAS Leading All Regulatory Activities
In driving crypto regulations in the country, the Monetary Authority of Singapore (MAS) has been at the forefront of introducing essential measures.
The MAS implemented fundamental measures for stablecoin issuers operating within the nation earlier this week.
With this decision, Singapore intends to assist its counterparts in strengthening the stablecoin market within the country.
Furthermore, establishing Singapore as a financial hub for a substantial portion of the crypto sector in Asia is the objective of the MAS.
Additionally, the Singapore central bank introduced new initiatives for the trials of wholesale CBDCs last week.
The central bank has implemented various initiatives to mitigate concerns regarding digital money’s security and innovation dimensions, Wholesale Central Bank Digital Currency (CBDC), and the advancement of Singapore’s dollar infrastructure.
