- The central bank is currently considering more limitations to the trading of digital currencies, according to the Monetary Authority of Singapore. They include restrictions on collateral and prohibitions on retail involvement in cryptocurrency transactions.
New Restrictions on crypto
On Monday, MAS minister Tharman Shanmugaratnam responded to a parliamentary inquiry on crypto exchange management. Singaporean politician Murali Pillai questioned if the MAS aims to apply more limitations on cryptocurrency venues to safeguard inexperienced individuals from engaging in such transactions, which are highly dangerous.
The central bank has continuously cautioned that virtual currencies are not viable holdings for the general people, according to the minister responsible for the MAS, who highlighted this in 2017.
The central bank banned the trivialization of the dangers associated with bitcoin trades reminded the MAS minister. The bank barred the promotion and sales of virtual currency systems in January. The country’s digital payment token (DPT) operators have taken steps to comply with the laws. This includes eliminating crypto ATMs from open spaces and pulling ads from locations associated with public transportation.
MAS minister revealed details
The minister also disclosed that MAS gave considerable thought to adding further consumer safety measures. These can entail restricting retail involvement and establishing guidelines for the use of leveraging while conducting cryptocurrency transactions.
However, due to the international character of crypto space, Minister Shanmugaratnam believed that there’s a need for globally harmonized consultation and cooperation. He said that they actively engages in several international benchmark groups where all these concerns are now being considered. On Monday, the MAS restated its previous warning about digital currencies, stating that they are extremely dangerous and not appropriate for the normal community. People who borrow capital to purchase virtual currencies run the risk of losing more of their original investment.