- Ravi Menon claims that the promise of substantial cost hikes is what draws them in.
- Despite warnings and safeguards, consumers are rapidly trading in cryptocurrencies.
There is no denying that the use of cryptocurrencies is on the increase and that governments throughout the globe are eager to safeguard their citizens. Especially from the many potential dangers that come with this new trend. Singapore intends to introduce new restrictions that would make it harder for regular investors to trade cryptocurrencies like Bitcoin. Independent Reserve found that 40% of Singaporeans are crypto holders. About three-quarters of them have many varieties.
Highlights from the study include:
“Bitcoin remained the most popular cryptocurrency, with 78% of investors holding it. 50% hold Ethereum and the third most popular cryptocurrency is Dogecoin, held by 25% of investors.“
Targeting Retail Use
Despite warnings and safeguards, consumers are rapidly trading in cryptocurrencies internationally and in Singapore, Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), said at an event on Monday. He claims that the promise of substantial cost hikes is what draws them in.
He said that the MAS was considering “adding frictions” to the retail use of cryptocurrencies like Bitcoin. To provide further context, the minister mentioned a seminar titled “Yes to digital asset innovation, No to cryptocurrency speculation,” which he believes captures the spirit of the same.
Possible measures include regulating the use of leverage and credit facilities for cryptocurrency trading and ensuring that customers are eligible for the investment.
The crypto-centric regulatory environment in Singapore is reportedly heating up at the moment. The MAS has been harsher than ever, rejecting crypto license applications outright and restricting the participation of individual investors. Towards the end of last week, the regulator had also ordered crypto platforms to disclose details about their economic activities, further establishing its authority.
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