Singapore proposes crypto rules to bolster consumer protection
Singapore’s regulators have ramped up warnings to retail investors over the “hazards” of speculating in cryptocurrencies and outlined proposals to keep consumers safe, after a series of high-profile crypto failures linked to the city-state.
In two consultation papers issued on Wednesday, the Monetary Authority of Singapore proposed restricting retail investors from borrowing money or using credit cards to buy cryptocurrencies and from lending out their digital tokens in search of yields. It also wants crypto exchanges to test would-be crypto buyers to check they understand risks in what it calls a “highly volatile” asset class.
Singapore has generally provided a welcoming environment for the crypto industry. Exchange Binance once described it as a “crypto paradise” and several prominent firms have established themselves there. But regulators have sounded the alarm after a series of high-profile crypto implosions this year, and are proposing restrictions on some of the most popular speculative tools.
Broader proposals include forcing service providers to ensure customer assets are segregated from their own assets and adopting “good industry practices” against unfair trading, including monitoring trading activity and setting out rules governing trading.
This story originally appeared on: Financial Times - Author:Mercedes Ruehl
