Singapore’s central bank recently posted a reply to a parliamentary question on the public’s retail exposure to digital payment token service providers. The Monetary Authority of Singapore said that crypto HODLings data was “not available.”
Chalking out why it was “not possible” to determine the same, Senior Minister and Minister in charge of MAS—Tharman Shanmugaratnam—said,
“Data on the total cryptocurrency holdings of the Singapore public are not available, as these involve transactions with both Singapore-based and overseas service providers. It is therefore not possible to determine the proportion of cryptocurrency holdings that the public has obtained through MAS-licensed DPT service providers.”
Shanmugaratnam’s statement further went on to warn the general public about investing in crypto. Attributing wild fluctuations as to why participants should “not trade” in crypto, he said,
“MAS has continued to reiterate its warnings that retail investors should not trade in cryptocurrencies. The prices of cryptocurrencies fluctuate wildly and investors stand to lose all the monies they have put into cryptocurrencies.”
Crypto Landscape in Singapore
Singapore was initially seen as a crypto hub alongside the UAE. Just when other countries started tightening regulations, Singapore welcomed a flock of crypto companies to its land. However, of late, the southeastern nation has started treading on the same regulatory path as its counterpart nations.
Towards the end of August, it was revealed that the MAS was considering stricter rules for retail crypto investors. As reported back then, the Managing Director of the Monetary Authority of Singapore—Ravi Menon—explicitly stated that “adding frictions” on retail access to cryptos like Bitcoin was an area that the MAS was contemplating.
The same would likely encapsulate customer suitability tests and restrict the use of leverage and credit facilities for crypto trading. The regulator had, however, clarified that the MAS would seek public feedback on its proposals by October.
In fact, even on the stablecoin regulation front, the regulator said that it would consult the public. Triggered by Terra’s UST mishap, the MAS was reviewing rules to deal with the risks of stablecoins in August.
Alongside, as reported earlier, the MAS is now more brutal than ever. From limiting the involvement of retail investors to explicitly denying crypto licensing applications it has executed a series of debatable actions. In fact, elevating its authority further, the regulator had also urged crypto platforms to present data about their business activity recently.