In an interview with Bloomberg Television, Ravi Menon, the managing director of the Monetary Authority of Singapore and Chief of Singapore’s central bank, highlighted risks for retail cryptocurrency investors.
We won’t stand in your way,” said Menon, “We have to do what is right for us, what is necessary to contain the risks. And the risks are primarily harm to retail investors.
Asia’s cryptocurrency market appears to be reviving, with Japan easing crypto regulations by making it easier to list tokens and Hong Kong trying to reclaim its status as a major global financial hub.
However, once a popular global crypto hub for its policies, Singapore is now attempting to reduce risks for retail crypto investors through restrictive rules. In a set of consultation papers, the Monetary Authority of Singapore expressed concern that many retail customers may “not have sufficient knowledge of the risks of trading.”
MAS) has proposed a slew of new rules, including capital and reserve requirements for stablecoin issuers. The measures also seek to prohibit issuers from engaging in other risky activities, such as lending or staking, which allows users to lock their crypto and earn interest.
Meanwhile, a recent Bloomberg report suggests that Hong Kong plans to legalise retail bitcoin and crypto trading, contradicting the city’s position in recent years.
Hong Kong is attempting to establish a mandatory licensing regime that could go into effect as early as March of next year. The regulators are seeking permission to list bitcoin and other cryptocurrencies, even though the city will not endorse any particular asset.
“I think our latest proposals would be among the strictest in the world with respect to retail access to cryptocurrencies,” Menon said. “And we think that’s necessary.” He acknowledged that some retail-focused crypto companies might move to other jurisdictions and wished them well.
Menon’s statement comes as Singapore and Hong Kong prepare to host the financial-technology conferences next week, featuring high-profile crypto executives such as Binance founder Changpeng Zhao and FTX CEO Sam Bankman-Fried.
