In a bid to encourage blockchain-related innovation, the central bank of Singapore: Monetary Authority of Singapore (MAS) introduced stricter digital asset regulations.
MAS’ Managing Director, Ravi Menon, said that despite several warnings to investors against digital assets, surveys still show that many retail investors seem “irrationally oblivious about the risks of cryptocurrency trading.” Hence, the body is considering sterner measures, as banning the asset class is not working. The key aim is to discourage digital asset speculation, which according to the Director, is the source of crypto issues.
Menon further stated, “Adding frictions on retail access to cryptocurrencies is an area we are contemplating. These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading.”
Hopefully, the measures taken will also combat money laundering and terrorist financing risks; manage technology and cyber-related risks; uphold the promise of stability in stablecoins, and lessen the potential financial stability risks.
(Source: Coin Geek)
