MAS mulls additional consumer protection safeguards for crypto trading

Last January, MAS already restricted the marketing of crypto services.

The Monetary Authority of Singapore (MAS) is mulling the introduction of additional consumer protection safeguards for cryptocurrency trading.

In a response to The Parliament, MAS Senior Minister and Minister in Charge Tharman Shanmugaratnam said these measures include placing limits on retail participation, and implementing rules on the use of leverage when transacting in cryptocurrencies. 

Shanmugaratnam, however, said that given the borderless nature of the crypto market, there will be a need for "regulatory coordination and cooperation globally" before additional safeguards can be put in place.

The MAS is already discussing these issues at various international standard-setting bodies where the agency actively participates.  

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MAS has consistently warned of cryptocurrency dangers and advised the public to refrain from participating in trading of such.

In January 2022, MAS even restricted the marketing and advertising of cryptocurrency services in public areas and disallowed cryptocurrency trading from being portrayed in a manner that trivialises its risks. 

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"Most cryptocurrencies are subject to sharp speculative price swings. Recent events have vividly demonstrated the risks, with prices of several cryptocurrencies falling drastically," Shanmugaratnam said.

"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," the minister added.