The central bank of Singapore suggested on Wednesday that as part of a series of strict measures aimed at raising citizens’ awareness of the risks associated with volatile assets, Singapore may soon require retail investors to pass a test and refrain from using credit card payments and other forms of borrowing to trade cryptocurrencies.
The Monetary Authority of Singapore is concerned that many retail customers may “lack sufficient knowledge of the risks of trading” digital payment tokens, causing them to “take on higher risks than they would otherwise have been willing, or are able to bear.” This concern was expressed in a set of consultation papers. The central bank also suggested prohibiting crypto companies with licences under the Payments Services Act of the nation from lending to retail investors, a proposal that might drive many companies out of business.
