Regulators in Singapore plan new rules to protect crypto investors

The Monetary Authority of Singapore (MAS) has proposed restricting retail investors from borrowing money or using credit cards to buy cryptocurrencies, as well as the right to lend their digital tokens in search of returns.

After a series of high-profile cryptocurrency crashes involving the city-state, namely TerraUSD, in May and the once iconic hedge fund Three Arrows Capital, regulators are sleeping and seeing how to start regulating the cryptocurrency sector harder.

In Singapore, for example, cryptocurrency exchanges are now also required to test potential buyers of cryptocurrencies to ensure they understand the risks in what MAS calls a "highly volatile" asset class.

Nevertheless, MAS has taken an active role in ensuring safe interaction with cryptocurrencies within its jurisdiction. It seeks to ensure that stablecoins are adequately backed by reserve assets pegged to the Singapore dollar or other major currencies.

Broader proposals require service providers to ensure that customer assets are separated from their own assets and adopt "good industry practices" against unfair trading, including monitoring trading activity and establishing rules governing trading.

While regulators regulate, we watch the ups and downs of crypto. Where, via Moni - right here!