- Ravi Menon claims that the promise of a significant cost hike is what attracts them.
- Despite warnings and guarantees, consumers are rapidly trading cryptocurrencies.
There is no denying that the use of cryptocurrencies is on the rise and that governments around the world are eager to protect their citizens. Especially from the many potential risks that come with this new trend. Singapore intends to put in place new restrictions that will make it difficult for ordinary investors to trade cryptocurrencies such as bitcoin. Independent Reserve found that 40% of Singaporeans are cryptocurrency holders. About three-quarters of them have several varieties.
Highlights from the study include:
Bitcoin remained the most popular cryptocurrency, with 78% of investors holding it. 50% own Ethereum and the third most popular cryptocurrency is Dogecoin, which is owned by 25% of investors.
Targeting Retail Use
Despite warnings and guarantees, consumers are rapidly trading cryptocurrencies internationally and in Singapore, Ravi MenonDirector general Monetary Authority of Singapore (Mas), at an event on Monday. And he claims that it is the promise of a significant cost increase that is attracting them.
He said MAS was considering “adding friction” to the hashing of cryptocurrencies such as Bitcoin. To provide additional context, the minister mentioned a seminar titled “Yes to Digital Asset Innovation, No to Cryptocurrency Speculation,” which he believes embodies the same spirit.
Possible measures include regulating the use of leverage and credit facilities for cryptocurrency trading and ensuring that clients are eligible to invest.
The crypto-centric regulatory environment in Singapore is said to be on fire at the moment. MAS has been tougher than ever, rejecting crypto license requests outright and restricting the participation of individual investors. Towards the end of last week, the regulator also ordered cryptocurrency platforms to disclose details about their economic activities, further strengthening its authority.
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Singapore authorities tighten measures against crypto industry
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