MAS Looks to Add Measures Making Crypto Less Accessible

The Monetary Authority of Singapore (MAS) looks to make crypto less accessible for investors as it plans to integrate additional protection for users. MAS managing director Ravi Menon explained that this move aims to limit impractical investments. Menon notes that these are “early decisive steps to mitigate consumer harm” since investors “seem to be irrationally oblivious about the risks of cryptocurrency trading.”

The MAS executive recognizes that an outright ban would prove to be an incompetent measure given the openness of the industry. Market access would still be available to most Singaporean investors through their mobile phones. In this light, the regulator is set to look into the feasibility of customer suitability tests as well as limiting access to credit facilities in an effort to add more friction.

MAS maintains its goal of promoting Singapore as a financial technology (fintech) hub. However, it also hopes to uphold consumer protections for its investors. “Innovation and regulation are not incapable of co-existing,” Menon added. International regulatory reviews will also play a role in the financial watchdog’s latest endeavor to co-create solutions and continue to caution investors of the risks of crypto investing.

“Since 2017, MAS has consistently warned that cryptocurrencies are not suitable investments for the retail public […] Recent events have vividly demonstrated the risks,” explained MAS chairman Tharman Shanmuharatnam. Earlier in January, the agency urged crypto companies to stop advertising their products to the general public “in a manner that trivializes the high risks of trading.” Following this decision, MAS allowed crypto firms to promote their services only on their own websites, mobile applications, and social media accounts.

Source: Decrypt