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Singapore to tighten retail crypto trading rules

The Monetary Authority of Singapore could introduce "customer suitability tests" in an effort to discourage people from trading cryptocurrencies.

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Singapore to tighten retail crypto trading rules

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Despite years of warnings and measures, Singaporeans are increasingly trading cryptocurrencies,
MAS managing director Ravi Menon said during a speech on Monday.

Many people seem to be "irrationally oblivious" about the risks of cryptocurrency trading, said Menon.

In January, the regulator restricted digital asset players from promoting cryptocurrency services at public spaces, leading to the dismantling of Bitcoin ATMs and the removal of advertisements in MRT stations.

Now, it is considering further measures, adding "frictions" on retail access to crypto.

"These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading," said Menon.

However, Menon has ruled out a ban on retail trading, conceding that such a move would not work in a borderless world.

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