Singapore Introduces Regulations for Crypto Trading - Latest cryptocurrency news

Singapore Introduces Regulations for Crypto Trading

Singapore regulatory teams are working on new rules to prevent speculative trading among individual crypto investors. One of the most significant proposals so far is to ban individual investors from receiving rewards when trading crypto.

According to the Monetary Authority of Singapore (MAS), companies that provide crypto assets will be banned from offering rewards or providing credit, margin trading, or leverage services to individual investors when trading crypto. Additionally, they will not be able to benefit from credit card payments made in Singapore.

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These rules will not be limited to Singapore only; they will cover all investors and include incentives such as consultancy and learning programs. MAS plans to implement these changes gradually starting from mid-2024.

Speculations following events like the growth of Three Arrows Capital hedge fund are believed to have played a significant role in these decisions. Measures to limit individual participation are being considered, including prohibitions on rewards and stakeholding.

However, according to Ho Hern Shin, Deputy Managing Director of MAS Prudential Regulation, these measures are still considered insufficient to protect customers from natural speculation and high risks associated with crypto trading. Shin emphasizes the need for people to refrain from trading unregulated assets, including those based abroad. MAS announced its final decision after receiving feedback on proposed guidelines for digital payment token services published in October 2022.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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