Singapore to ban retail crypto lending services
The Monetary Authority of Singapore (MAS) decided to ban crypto lending businesses in the country for retail investors.
Singapore is a very big spot center for the crypto sector. On one side the population of this country adopted cryptocurrencies in the early phase, on the other side government agencies brought rules & regulations to ensure the safe engagement of citizens in the crypto industry. In this country, people can invest their money without paying any kind of tax over profit/loss, which means Singapore is a tax-free country.
Recently Singapore’s financial regulator & central bank authority MAS released new measures, in order to bring more safety rules for crypto investors.
Under the new measures all the crypto firms are required to hold their customers’ funds on a trusted custody platform and this rule will be mandatory before the end of this year.
The second measure targeted all the crypto lending services. According to MAS, crypto lending services are not very safe and it is better to keep the retail investors away from such services.
So new laws will keep retail investors away from crypto lending platforms but crypto lending companies will be free to provide their services to the financial institutions & big investors.
Reports noted that the latest decision to ban retail crypto lending services came following several months of discussion among the crypto sector participation (government, non-government, & public). The final discussion noted that crypto lending services are very risky & they may result in the loss of the whole investment.
Just a couple of days ago, Thailand’s securities regulatory body issued a similar measure & ordered a ban on crypto lending services.
Thai SEC also said that cryptocurrencies are highly risky & it’s not easy for the crypto lending services to maintain their lending because of the highly volatile nature of cryptocurrencies.
Earlier this year the majority of the crypto lending platforms collapsed badly, because of high volatility in the crypto sector & bankruptcy of crypto companies.
Read also: Thailand regulator says Cryptocurrencies are high risk, ban crypto lending
