Singapore says that crypto ban for retail probably doesn't work
Singapore says that crypto ban for retail probably doesn't work
- According to Ravi Menon, the head of MAS, a ban on the access of individual dealers to crypto can not impair the ability of citizens to circumvent it
- The central bank is considering the introduction of a customer approval test for trading digital assets as well as restrictions on the trade in leverage
The head of the Monetary Authority of Singapore (MAS), which is responsible for cryptor regulation, has admitted that the ban on retail access to Kryptoasseets "probably does not work" because it is limitless and can handle the restrictions on it.
In a (n Open address MAS, RAVI MENON that Singapore could have access to numerous stock exchanges worldwide to act with digital assets and negated the proposed restrictions that they should protect from extreme times of market volatility.
This limits set by the MASMAN Shanmugaratnam last month include the introduction of customer appropriation tests with simultaneous restriction on the use of debt and credit facilities. MAS has repeatedly played with the idea of a complete ban on retail as a means of risk reduction, although it still has to formally introduce these measures.
The leverage was often made responsible for causing the greatest financial damage to those participants who have no expert knowledge of how market mechanisms work.
"Adding friction in retail access to cryptocurrencies is an area that we consider," said Menon in his speech.
A flat -rate ban on retail access to crypto would not be a practical strategy, added the director and signaled the need to work with other regulatory authorities worldwide to implement such a guideline.
"With just one mobile phone, Singapore has access to any number of crypto exchanges around the world and can buy or sell any number of cryptocurrencies," said Menon.
The director said that confusion about the attitude of the region was created opposite the investment class and emphasized how observers welcome them as a region for innovations and see them as unaffordable.
crypto regulations in Singapore-a balancing act
In recent years,Singapore has continuously focused on strengthening its regulations for digital assets and has often referred to consumer protection as the main reason for motivation.
The region was often advertised as one of the first developed economies that have introduced clearer guidelines for digital assets since 2016.
While the regulations of the city state should protect consumers from damage, it is not clear how the MAS intends to monitor the restrictions for retailers for those who use a VPN, which can lead to an internet user in Singapore is presented to the stock exchanges than from another jurisdiction. A spokesman for MAS did not immediately answer a request for comment.
proposed restrictions for retailers would complement Singapore's existing licensing system for providers of digital assets that intend to monitor, monitor and monitor the way they offer customers.
At the beginning of this year Singapore, a regulatory gap made a regulatory gap that had made it possible to offer their business abroad in Germany registered in Germany and at the same time to avoid supervision in Germany.
The central bank also published guidelines in January that prohibited payment of payment to present Krypto in a way that plays down the risks of trade with the new investment class.
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The article Singapore Says Crypto Ban for Retail 'Not Likely to Work' is not a financial advice.