The Monetary Authority of Singapore (MAS) has informed the Singaporean Parliament that the Central Bank is considering imposing additional restrictions on cryptocurrency trading. Placing limits on retail participation and regulations on the use and transacting in cryptocurrencies are some of the proposed restrictions.

The discussion started after Murali Pillai, a Member of the Singaporean Parliament, questioned whether the MAS intended to impose additional limitations on cryptocurrency trading platforms in order to prevent less experienced people from engaging in such highly dangerous trades.

Tharman Shanmugaratnam, the Minister in charge of the MAS, answered by explaining that since 2017, the Central Bank has consistently warned that cryptocurrencies are not suitable investments for the retail public.

He detailed that in January, the Singaporean Central Bank restricted the marketing and advertising of cryptocurrency services in public areas and disallowed cryptocurrency trading from being portrayed in a manner that trivializes its risks. Since then digital payment token (DPT) service providers in the country have taken actions to meet the Central Bank’s rules, including removing cryptocurrency ATMs from public areas and taking down advertisements from public transport venues.

The Minister further revealed:

“MAS has been carefully considering the introduction of additional consumer protection safeguards. These may include placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”

Minister Shanmugaratnam opined, “Given the borderless nature of cryptocurrency markets, however, there is a need for regulatory coordination and cooperation globally. These issues are being discussed at various international standard-setting bodies where MAS actively participates.”

The MAS reiterated the crypto warning saying:

“Cryptocurrencies are highly risky and are not suitable for the retail public. People can lose most of the money they have invested, or more if they borrow to purchase cryptocurrencies.”