Singapore may soon require retail investors to take a test and refrain from using credit card payments and other forms of borrowing to trade cryptocurrencies, the central bank proposed on Wednesday as part of a series of stringent measures aimed at making citizens aware of the risks associated with volatile assets.
In a set of consultation papers, the Monetary Authority of Singapore expressed concern that many retail customers may “lack sufficient knowledge of the risks of trading” digital payment tokens, leading them to “take on higher risks than they would otherwise have been willing, or are able, to bear.” The central bank also proposed that crypto firms licenced under the country’s Payments Services Act be barred from lending to retail investors, a move that could put many firms out of business.
