The Singaporean government is tightening its grip on crypto trading in the country. A top Singaporean bank official said that the city plans to make crypto trading even harder for retail investors on Monday, August 29.
Additionally, he emphasized that retail investors are “irrationally oblivious” to the risks of cryptocurrency trading. MAS guidelines were issued earlier this month restricting crypto trading service providers from promoting their services. Investors were shielded from crypto’s volatility by this move.
In the wake of rising U.S. interest rates and runaway inflation, cryptocurrency prices have plunged this year.
“MAS’ facilitative approach to digital assets does not contradict its restrictive approach to cryptocurrencies,” Menon said.
There are several crypto exchanges with a significant presence in Singapore, including Gemini from the United States and Huobi from China.
The MAS received 180 applications for cryptocurrency payment licenses under a new regime in 2020. After an elaborate due diligence process that is still ongoing, Singapore has only issued about two dozen licenses so far.