QUESTION NO 1849

NOTICE PAPER 1186 OF 2022

FOR WRITTEN ANSWER

Date: For Parliament Sitting on Four July 2022

Identify and Constituency of Member of Parliament

Mr Murali Pillai, MP, Bukit Batok SMC

Query:

To ask the Prime Minister whether or not MAS intends to implement additional restrictions on cryptocurrency buying and selling platforms with a view to guard unsophisticated individuals from getting into into such trades that are thought of extremely dangerous.

Reply by Mr Tharman Shanmugaratnam, Senior Minister and Minister accountable for MAS:

1. Since 2017, MAS has constantly warned that cryptocurrencies should not appropriate investments for the retail public. Most cryptocurrencies are topic to sharp speculative value swings. Latest occasions have vividly demonstrated the dangers, with costs of a number of cryptocurrencies falling drastically. 

2.  In January this yr, MAS went additional than most different regulators, to limit the advertising and promoting of cryptocurrency providers in public areas, and disallow cryptocurrency buying and selling being portrayed in a way that trivialises its dangers. All entities dealing in cryptocurrencies (termed digital cost token or DPT service suppliers) in Singapore are anticipated to adjust to the MAS tips. Since then, DPT service suppliers have taken actions to satisfy these guidelines, comparable to eradicating cryptocurrency ATMs from public areas and taking down ads from public transport venues.  
 
3. DPT service suppliers are at the moment regulated below the Cost Companies Act (PS Act) primarily for cash laundering and terrorism financing dangers. However the PS Act additionally empowers MAS to impose further measures on DPT service suppliers to make sure higher shopper safety, and to keep up monetary stability and safeguard the efficacy of financial coverage.  

4. MAS has been rigorously contemplating the introduction of further shopper safety safeguards. These might embrace inserting limits on retail participation, and guidelines on the usage of leverage when transacting in cryptocurrencies. Given the borderless nature of cryptocurrency markets, nevertheless, there’s a want for regulatory coordination and cooperation globally. These points are being mentioned at numerous worldwide commonplace setting our bodies the place MAS actively participates.  

5. MAS reiterates its warning: cryptocurrencies are extremely dangerous and should not appropriate for the retail public. Folks can lose a lot of the cash they’ve invested, or extra in the event that they borrow to buy cryptocurrencies.

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