Singapore Proposes Rules to Tighten Crypto Speculation in Retail Markets – Here’s the Latest
The Monetary Authority of Singapore (MAS) has proposed revised guidelines to curb the growing rate of digital asset speculation in retail markets.
In a recent publication, the Central Bank released amended regulations for digital payment token providers and related cryptocurrency institutions on market activities particularly in reducing price speculation.
According to the document, firms will not be permitted to offer trading incentives to customers as authorities have argued for months that some users are being lured to speculate and make huge gains which may likely result in losses.
Flagged incentives under the proposed guidelines include providing leverages and margins and to an extent some financial support is now at risk of being outlawed.
These regulations come as the government plans to tighten the prevalence of fraud and reduce risks in the retail market. In recent times, global authorities have been pushing to make local markets safer for investors following the implosions of cryptocurrency firms that wiped billions off the markets.
The financial regulator also proposes cutting off credit lines for the purchase of certain assets as firms will be prohibited from accepting any purchases from locally issued credit cards.
Furthermore, referrals that offer rewards to onboard new clients and learn-to-earn programs are also limited in the new guidelines. The new laws expand the application to all retail investors; both accredited and unaccredited users.
Geographically, the guidelines extend to retail traders slightly outside the city-state. Coming into effect in mid-2024 the rules have been proposed after a year-long public consultations to properly regulate digital asset payment token providers.
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