Despite being a crypto hub, Singapore seems still skeptical about crypto. In a recent proposal, the MAS (Monetary Authority of Singapore) suggested a range of measures that include central banks to restrict retail customers’ access to cryptocurrencies.
In addition, it prevents investors from borrowing funds to purchase crypto tokens and prohibits firms from lending or staking their coins to generate yields. Following these measures, a leading Singapore crypto association opposed the proposal condemning it as being “overly restrictive.”
Singapore Leading Crypto Group Feedback To MAS Proposal
Following the published proposal by the MAS containing a range of “overly restricted” measures, the Blockchain Association of Singapore sent out an 11-page feedback opposing such a blanket ban.
Per a report, the association objected that an approval of a proposed measure like that would only make individuals interested in cryptocurrency token lending seek other unregulated offshore alternatives. The association also added in the feedback document disagreeing on sections such as offering retail incentives.
Blockchain Association Of Singapore’s Objection To MAS Proposal
Though the association opposed the MAS, they didn’t entirely disagree with some proposed measures. In its range of agreed measures, the Blockchain Association of Singapore supported MAS ‘suggestion of banning customers’ ability to borrow funds to buy crypto tokens and crypto companies to distinguish customers’ assets from the company’s own.
According to the association, the lending issue allows customers to earn interest, which is part of what attracts people to buy and hold digital payment tokens.
Chia Hock Lai, chairman of the association’s board, stated that the group is “proposing a more measured and targeted approach” that includes doubling down on educating consumers on risks associated with the dealing of unregulated entities and increasing enforcement activities on those engaging in regulated activities without the requisite regulatory approvals.
Furthermore, Singapore’s central bank has proposed a range of tighter measures to prevent retail customers from the volatile cryptocurrency market, including prohibiting companies from lending or staking their digital assets to generate yields and blocking individuals from borrowing to fund token purchases.
Chia added:
“The proposed measures, while well-intended, might have unintended consequences if implemented in its entirety, including leading consumers to move towards unregulated service providers.”
At the end of the note, the association expressed disagreement with the MAS proposing to impose a complete ban on firms giving incentives to retail customers and called it “too draconian.”
Instead, the association recommended a more distinct idea of allowing gifts that are not at all associated with a financial acquisition. Meanwhile, the global cryptocurrency market capitalization is currently almost up by 1%, sitting at $859 billion.
Among the top cryptocurrencies by market cap, Ethereum is up 5% in the last seven days, trading at a price of $1,264 at the time of writing. While Bitcoin is up by 2% over the same time period looking to break the $16,000 zone with a trading price of $16,937.
-Featured image from istock, chart from TradingView