Crypto adoption is evidently on the rise, and regulators worldwide are keen on protecting consumers from all its inherent risks. In what is the latest development, Singapore is planning to roll out new regulations that will make it more difficult for retail investors to trade cryptos like Bitcoin.
Bitcoin, crypto traders ‘irrationally oblivious‘
Per a recent survey by Independent Reserve, 40% of Singaporeans currently own crypto. Among them, around 76% hold two or more different types. Per the report’s highlights,
“Bitcoin remained the most popular cryptocurrency, with 78% of investors holding it. 50% hold Ethereum and the third most popular cryptocurrency is Dogecoin, held by 25% of investors.“
Alongside, the overall awareness also remains to be high. Per IR, 90% of Singaporeans have heard of at least one crypto, while 87% have heard of Bitcoin. Furthermore, around 47% plan to buy crypto in Singapore in the next 12 months.
The Managing Director of the Monetary Authority of Singapore—Ravi Menon—said at an event on Monday that despite warnings and measures, surveys show that consumers are increasingly trading in cryptos globally and in Singapore. Per him, they are attracted by the prospect of sharp price increases.
He said,
“They seem to be irrationally oblivious about the risks of cryptocurrency trading.”
He said that “adding frictions” on retail access to cryptos like Bitcoin was an area that the MAS was contemplating. Elaborating on what the same might encapsulate, the minister said a seminar titled ‘Yes to digital asset innovation, No to cryptocurrency speculation,’
“These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading.”
Menon said the MAS would seek public feedback on its proposals by October. He added that reviews are ongoing by regulators globally.
As reported recently, the crypto-centric regulatory landscape in Singapore is currently heating up. From limiting the involvement of retail investors to explicitly denying crypto licensing applications, the MAS is now more brutal than ever. Elevating its authority further, the regulator had also urged crypto platforms to present data about their business activity towards the end of last week.
Read More: Will Crypto firms survive Singapore’s regulatory heat?