Singapore mulls tighter crypto rules for consumer protection

The Monetary Authority of Singapore (MAS) is considering stricter regulations for crypto to protect consumers following the recent disruptions in the space, Bloomberg reported.

MAS’ considerations “may include placing limits on retail participation and rules on the use of leverage when transacting in cryptocurrencies,” says MAS chairperson Tharman Shanmugaratnam. This was part of his response to a question raised in parliament.

Since 2017, the regulatory body has repeatedly warned that crypto is not a suitable investment asset for retail investors due to sharp price swings. Shanmugaratnam said the recent issues in the crypto market demonstrate the risks involved.

Both Terraform Labs, whose TerraUSD stablecoin crashed in May, and Three Arrows Capital, which was ordered into liquidation and reprimanded by MAS, are based in Singapore.

Crypto platform Vauld, which is also based in the city-state, suspended its withdrawals and trading functions, citing the adverse market conditions of the crypto winter.

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