Singapore, once heralded as a hub for crypto, may be taking steps to curtail retail participants from crypto trading.

While the country remains attractive for Web3.0 institutions and funds to set up in, they seem to be going the opposite way with the average joe.

“Retail investors should steer clear of cryptocurrencies. We cannot emphasis this enough”

Deputy Prime Minister of Singapore Heng Swee Keat

With even the deputy prime minister declaring that cryptocurrencies are not for the layman, it is hard to envision Singapore in the same light as when it signaled interest to harness blockchain technology.

MAS Remains Firm On Crypto Stance

In a seminar today, Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), spoke on crypto’s future.

In it, he mentioned that cryptocurrencies are unsuitable for use as money, and that MAS regards them as “highly hazardous” for retail investors.

At the Green Shoots Seminar this morning, MAS MD Ravi Menon, explained the complexities of the #digitalasset ecosystem and its different components, & what MAS is actively promoting and discouraging; and what are the risks MAS is seeking to manage. https://t.co/6LkxiaFpZr

— MAS (@MAS_sg) August 29, 2022

While his statements may not be well-received by those in the space, some have said that the crypto winter is proving MAS right.

With the collapse of Terra, 3AC, and protocols being exploited seemingly everyday, it may be too early for the average user to enter the world of Web3.0.

However, the biggest takeaway includes MAS potentially restricting the “use of leverage and credit facilities for cryptocurrency“.

While they recognize that an outright ban would be unlikely to work, they are exploring “adding frictions on retail access to cryptocurrencies“.

In fact, while MAS has turned away companies like Binance and Bybit, they attribute this to prioritizing safety first.

Blockchain, Not Crypto

While the overall stance on crypto remains firmly against retail participants entering, Singapore still retains a positive view on the underlying technology.

“MAS seeks to anchor in Singapore crypto players who can value add to our digital asset ecosystem and have strong risk management capabilities“

Ravi Menon

Furthermore, MAS may be proposing a regulatory approach for stablecoins, which will occur in October this year.

“MAS sees good potential in stablecoins provided they are securely backed by high quality reserves and well regulated“

Also Read: “The Nature Of Money Will Keep Changing” Says DBS CEO Piyush Gupta

[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]

Featured Image Credit: Chaindebrief