Singapore considers implementing new regulations for cryptocurrencies, aiming to prohibit retail traders from utilizing incentives and credit cards.

The Monetary Authority of Singapore (MAS), the financial watchdog of Singapore, is planning to implement new regulations to protect retail crypto investors from highly speculative assets. MAS has proposed measures to restrict crypto businesses from offering incentives to retail customers, as it believes that these incentives can impair judgment and lead to uninformed trading. Despite disagreement from respondents to its consultation paper, MAS maintains that such incentives can entice individuals to trade tokens without fully understanding the risks involved. Additionally, businesses will be prohibited from offering margin/leverage transactions and accepting locally issued credit cards, as these could provide easy access to debt financing for retail customers. The new regulations are expected to be gradually phased in from mid-2024. MAS’s move to regulate crypto trading follows its recent introduction of rules for stablecoin issuers tied to the Singapore dollar or G10 currencies. These rules outline requirements for stability, capital, redemption, and audit result disclosure. MAS has stressed that only stablecoin issuers meeting all specified criteria will be considered for the designation of “MAS-regulated stablecoins.”