Introduction
The Monetary Authority of Singapore (MAS) has announced new regulations aimed at restricting retail cryptocurrency speculation. The measures, which came into effect on August 1, 2020, require cryptocurrency platforms to be licensed and implement stringent reporting requirements.
Licensing Requirements
Under the new regulations, cryptocurrency platforms must be licensed by the MAS if they operate in Singapore or target Singaporean investors. To obtain a license, platforms must meet a range of requirements, including anti-money laundering and counter-terrorism financing measures, as well as technology risk management practices.
Reporting Requirements
Cryptocurrency platforms must also adhere to stringent reporting requirements, including submitting annual audits and risk assessments. They must also notify the MAS of any security breaches or other significant incidents.
Investor Protection
The measures are aimed at protecting investors from the risks associated with retail cryptocurrency speculation. The MAS has warned that cryptocurrencies are highly volatile and that investors could lose their entire investment.
Conclusion
The MAS’s new regulations represent a significant step towards regulating the cryptocurrency industry in Singapore. By requiring platforms to be licensed and adhere to stringent reporting requirements, the MAS aims to protect investors from the risks associated with retail cryptocurrency speculation.
