Last Updated: 30 August 2022
There will probably be extra protection for crypto lovers in Singapore. Or, in other words, more rules, making it more difficult to buy bitcoin. The Monetary Authority of Singapore (MAS), the central bank, and the financial watchdog will work together to make this happen.
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Making Bitcoin More Difficult
Decrypt reports that they want to make it harder for investors to buy bitcoin and altcoins.
The MAS is going to conduct a study to identify ways to add ‘extra friction’ to the purchase process. They are thinking of tests to find out whether the potential buyer is suitable to enter the crypto market or, for example, by restricting access to credit.
At the Green Shoots Seminar, MAS director, Ravi Menon, said that despite “decisive steps to limit consumer harm “there are still many consumers who “seem to be irrationally ignorant of the risks of crypto trading.”
Menon said a blanket ban “is unlikely to work” yet. He also sees that the industry is global, and that Singaporeans can access the market “with just a mobile phone.”
Regulation versus innovation
They do want to continue to promote Singapore as a fintech hub, but this should not be at the expense of investor protection. He ends with a nice oneliner:
“Innovation and regulation do not fit together.”
The MAS will also look at considerations made by international regulators. The central bank first raised the idea of imposing restrictions on crypto investors last month.
Despite this, the country’s largest bank, the DBS Bank, shared that its new trading desk is hugely popular. The DDEx saw the total number of transactions double in a few months. The trading volume even went up four times in just four months.