Key Takeaways:
- The Monetary Authority of Singapore plans to set up a regulatory body globally.
- MAS still does not support investments in cryptocurrency.
As the crypto market is going through a major crash at the moment, the volatility has soared, and even expert analysts are having a hard time predicting the next move of the market. Awareness among authorities has also increased and they have been constantly monitoring the market to safeguard consumers from facing major losses.
The Monetary Authority of Singapore (MAS) has always warned that cryptocurrencies are not suitable for investments because of their volatile nature. Recently, the Prime Minister of the country, Mr. Murali Pillai, answered a few questions related to the restrictions on cryptocurrency trading platforms.
The MAS has been attempting to prevent the entry of “unsophisticated persons” from entering into the volatile market. The organization even restricted the marketing and advertising of cryptocurrency services in public areas. They have also been keeping an eye on advertisements that trivialize the risks involved in investing in virtual assets.
They even framed new regulations for the digital payment token service providers or DPT service providers and made it mandatory for them to comply with these. The service providers then started removing cryptocurrency ATMs from public areas and have also taken down advertisements from public transport venues.
The regulator of Singapore is also considering the introduction of additional consumer protection safeguards. They are planning to do so by placing limits on retail participation and introducing rules on the use of leverage during transactions of digital currencies. Discussions regarding the same are underway at several international standards-setting bodies where the organization participates.
The MAS also has plans to launch regulatory coordination and cooperation globally. As of now, the DPT service providers are being regulated under the Payment Services Act (PS Act) to protect consumers from money laundering and terrorism financing risks.
