{"id":33162,"date":"2022-10-26T05:38:30","date_gmt":"2022-10-26T05:38:30","guid":{"rendered":"http:\/\/egrowonline.com\/?p=33162"},"modified":"2022-10-26T05:38:30","modified_gmt":"2022-10-26T05:38:30","slug":"singapore-plans-tighter-cryptocurrency-rules-to-limit-risks-for-retail-investors","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=33162","title":{"rendered":"Singapore plans tighter cryptocurrency rules to limit risks for retail investors"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">\u201cMany retail customers may not have sufficient knowledge of the risks of trading [cryptocurrencies], leading them to take on higher risks than they would otherwise have been willing, or are able, to bear,\u201d the bank said in its 35-page consultation paper.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Cryptocurrency companies, it added, have \u201ca responsibility to guard against consumers participating in a market that they do not fully understand\u201d.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">According to the MAS, the measures are set to be discussed with industry players before being first introduced as guidelines then eventually written into law.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Both cryptocurrency entities that have been granted licences or in-approval licences from the regulator \u2013 including Coinbase and Crypto.com \u2013 and firms operating under an exemption while awaiting approval would have to comply with the rules, which do not apply to accredited or institutional investors.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Wednesday\u2019s development came amid a global push by regulators to better govern the cryptocurrency space.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Singapore had earlier positioned itself as a global hub for the industry alongside rival cities such as Dubai, but it has since been troubled by a wave of recent high-profile controversies, largely driven by the crash of the so-called stablecoin <span title=\"\" data-entity-uuid=\"ac33c527-9ecc-454e-a5cb-b64624d64327\" data-entity-type=\"node\" data-entity-bundle=\"article\" class=\"generic-article__body article-details-type--a content--a\" data-v-d71b94a8=\"\" data-v-e6531554=\"\"><a target=\"_blank\" href=\"https:\/\/www.scmp.com\/business\/banking-finance\/article\/3183071\/stablecoin-implosion-shows-it-has-no-role-form-money-says?module=inline&amp;pgtype=article\" class=\"link-text\" data-v-d71b94a8=\"\" rel=\"noopener\"><span class=\"text\" data-v-d71b94a8=\"\">TerraUSD<\/span><\/a><\/span>.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<div class=\"generic-article__body article-details-type--div content--div methode-html-wrapper oembed-wrapper\" data-v-e6531554=\"\" data-v-3b58743e=\"\">\n<div title=\"Decentralised finance, explained: why it is an accessible way to manage your wealth\" class=\"generic-article__body article-details-type--iframe content--iframe\" data-v-224161e3=\"\" data-v-e6531554=\"\">\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"Decentralised finance, explained: why it is an accessible way to manage your wealth\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/qS4HYruF1fM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Three Arrows Capital, a cryptocurrency hedge fund based in the city state, <span title=\"\" data-entity-uuid=\"8920305f-bde5-479e-8b3c-b9d3661453f0\" data-entity-type=\"node\" data-entity-bundle=\"article\" class=\"generic-article__body article-details-type--a content--a\" data-v-d71b94a8=\"\" data-v-e6531554=\"\"><a target=\"_blank\" href=\"https:\/\/www.scmp.com\/business\/banking-finance\/article\/3182373\/fear-grips-cryptocurrency-traders-and-magnifies-global?module=inline&amp;pgtype=article\" class=\"link-text\" data-v-d71b94a8=\"\" rel=\"noopener\"><span class=\"text\" data-v-d71b94a8=\"\">collapsed in June<\/span><\/a><\/span>, and cryptocurrency lender Hodlnaut has been placed under interim judicial management by the Singapore courts.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Authorities have stepped up their messaging in recent months, warning citizens about the speculative nature of cryptocurrencies that can result in investors being hit with huge losses.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">This was in addition to a ban in January on cryptocurrency marketing or advertising in public spaces, which saw the removal of crypto ATMs and advertisements plastered around railway stations.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Ravi Menon, Singapore\u2019s central bank chief, made it clear in August that authorities strongly discouraged cryptocurrency trading for retail investors as it was \u201chighly hazardous\u201d, but said they saw more value in digital assets and stablecoins, tokens whose values are typically tied to fiat currencies.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">On Wednesday, the MAS again stressed in a press release that cryptocurrency trading was \u201chighly risky and not suitable for the general public\u201d.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">The central bank added that it had considered entirely banning cryptocurrency trading for retail consumers, but it said such a move would likely be limited in its effectiveness given the cross-border nature of trading.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Cryptocurrencies, it said, also played a supporting role in the broader digital asset ecosystem, so its proposed measures were more targeted.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Apart from restricting consumer access, the MAS said in its consultation paper that it was also considering enacting rules to better govern how cryptocurrency companies conduct their business.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<div id=\"Blockquote\" class=\"generic-article__body article-details-type--blockquote-quote content--blockquote-quote blockquote\" data-v-671baace=\"\" data-v-e6531554=\"\" data-v-3b58743e=\"\">\n<div class=\"block-quote-container\" data-v-671baace=\"\">\n<h2 class=\"quote-body-container\" data-v-671baace=\"\">\n      Regulations go hand in hand with innovation in financial services<br \/>\n      <span class=\"quote-body-container__author author\" data-v-671baace=\"\">Ho Hern Shin, MAS deputy managing director of financial supervision<\/span><\/h2>\n<\/div><\/div>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">For example, it proposed that customers\u2019 assets be kept separate from the companies\u2019 own to mitigate the risk of loss or misuse of assets, and said it also planned to restrict cryptocurrency platforms from lending retail investors\u2019 assets.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">It said it was considering putting in place a transition period of between six and nine months for firms to comply with the new guidelines.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Meanwhile, in a separate set of consultation papers, the central bank sought to expand its existing regulatory framework on stablecoins, noting that they have the potential to be a \u201cmedium of exchange to facilitate transactions in the digital asset ecosystem\u201d.<\/p>\n<\/div>\n<div data-v-59caeb6e=\"\" data-v-3b58743e=\"\">\n<p class=\"generic-article__body article-details-type--p content--p\" data-v-e6531554=\"\" data-v-3b58743e=\"\">Ho Hern Shin, deputy managing director of financial supervision at the MAS, said the proposed measures marked a milestone in Singapore\u2019s strategy of fostering an \u201cinnovative and responsible\u201d digital asset system. \u201cRegulations go hand in hand with innovation in financial services,\u201d she said.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMiggFodHRwczovL3d3dy5zY21wLmNvbS93ZWVrLWFzaWEvZWNvbm9taWNzL2FydGljbGUvMzE5NzI3My9zaW5nYXBvcmUtcGxhbnMtdGlnaHRlci1jcnlwdG9jdXJyZW5jeS1ydWxlcy1saW1pdC1yaXNrcy1yZXRhaWwtaW52ZXN0b3Jz0gGCAWh0dHBzOi8vYW1wLnNjbXAuY29tL3dlZWstYXNpYS9lY29ub21pY3MvYXJ0aWNsZS8zMTk3MjczL3NpbmdhcG9yZS1wbGFucy10aWdodGVyLWNyeXB0b2N1cnJlbmN5LXJ1bGVzLWxpbWl0LXJpc2tzLXJldGFpbC1pbnZlc3RvcnM?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cMany retail customers may not have sufficient knowledge of the risks of trading [cryptocurrencies], leading them to take on higher risks than they would otherwise have been willing, or are able, to bear,\u201d the bank said in its 35-page consultation paper. Cryptocurrency companies, it added, have \u201ca responsibility to guard against consumers participating in a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":33163,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[36],"tags":[52,102,481,294,1811,250,719,8820,658],"class_list":["post-33162","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-cryptocurrency","tag-investors","tag-limit","tag-plans","tag-retail","tag-risks","tag-rules","tag-singapore","tag-tighter"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/10\/6724da58-85c1-4562-b5a0-c5777a4205e9_ab884f65.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/33162","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33162"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/33162\/revisions"}],"predecessor-version":[{"id":33164,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/33162\/revisions\/33164"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/33163"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33162"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33162"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33162"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}