The Monetary Authority of Singapore (AMS) is seeking new regulation to protect its investors trading in the cryptocurrency sector.
Recently, it has come to the fore that Singapore’s crypto currency controls will be tightened. AMS will intensify its review of firms providing cryptocurrency services in the city-state ahead of planned regulatory changes. Among the planned changes is the protection of investors.
Singapore Puts Limits on Crypto Loans and Leverage
The Monetary Authority of Singapore (AMS) has joined global regulators to create new rules on cryptocurrencies. AMS is considering restricting retail investors’ use of leverage and credit facilities.
While MAS noted that its rules may also include tests to determine client compliance, he said many people seem irrationally unaware of the risks of trading. For this reason, it wants to bring a regulation to protect the investor.
In his seminar titled Yes to Digital Asset Innovation, No to Cryptocurrency Speculation, MAS executive Ravi Menon said that he plans to consult the public about the proposals by October, and made the following statements on the subject:
“Banning retail access to cryptocurrencies probably won’t work. The world of cryptocurrencies is limitless. There is currently great activity among global regulators to improve regulation in this area. MAS will also adapt to this mobility.”
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