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Singapore is exploring restricting retail access to cryptocurrencies: MAS chief Ravi Menon
SINGAPORE – The city’s regulators are looking at making it harder for the public to buy cryptocurrencies, but will not ban such trading activities.
The Monetary Authority of Singapore (MAS) is contemplating having customer suitability tests and restricting the use of leverage and credit facilities for crypto trading, its chief Ravi Menon said at a seminar on Monday (Aug 29).
MAS regards cryptocurrencies as unsuitable for use as money and as “highly hazardous” for retail investors, he said.
But given that the crypto space is borderless, banning retail access to crypto is not likely to work, Mr Menon noted.
“With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies,” he said.
He added that MAS sees good potential in stablecoins, provided these are securely backed by high-quality reserves and are well regulated.
On crypto players’ frustrations with the licensing process, Mr Menon said MAS cannot compromise its due diligence process just to make it easy for digital asset players to get a licence.
“Given the large number of applicants for licences, we have been prioritising those who demonstrate strong risk management capabilities and the ability to contribute to the growth of Singapore’s fintech and digital asset ecosystem,” he said.
MAS has come under criticism for what players said are unclear rules and positions, as well as a tedious licensing regime.
Source: https://www.straitstimes.com/business/economy/mas-will-explore-restricting-retail-access-to-cryptocurrencies-ravi-menon