Singapore Will Restrict Crypto Speculation
24 Nov, 2023 ● Crypto News
The Monetary Authority of Singapore (MAS), in response to comments on its proposed Digital Payment Token (DPT) regulations, established guidelines for DPT service providers to deter speculation in cryptocurrency investments.
Retail clients can avoid price speculation by following these five tips from DPT service providers, according to MAS, the de facto central bank of Singapore.
Before providing cryptocurrency services, DPT service providers need to determine how risk-aware their clients are.
Furthermore, it was recommended that DPT service providers refrain from offering any incentives for cryptocurrency trading.
Thirdly, financing, margin, or leveraged transactions are not available from DPT service providers.
Refusing to accept payments from credit cards issued locally is another measure that MAS thinks will deter cryptocurrency speculation.
Finally, a customer's net worth will not be computed with their cryptocurrency holdings.
Ho Hern Shin, MAS's deputy managing director for financial supervision, made the following remarks regarding the decision:
“While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.”
A portion of the motivation behind speculative cryptocurrency trading, according to the MAS, is the fear of missing out on profitable returns, verified success stories, and celebrity endorsements. These factors together present "significant risks and consumer harms."
Sources:
https://cointelegraph.com/news/singapore-restrict-retail-crypto-speculation-with-new-rules
