Singapore’s Central Bank Says Impossible to Determine Public Crypto Holdings
The central bank of Singapore said it has no data on the total crypto holdings held by the Singapore public. The bank’s chairman Tharman Shanmugaratnam said data on such holdings cannot be determined “as these involve transactions with both Singapore-based and overseas service providers.”
Investors Risk Losing “all the monies they have put in cryptocurrencies,” says MAS
The Monetary Authority of Singapore (MAS), the central bank and top financial regulator of Singapore, said it is not able to determine the percentage of crypto holdings held by the public. The reason for this is that these holdings include transactions with both local and overseas service providers, said Tharman Shanmugaratnam, chairman of MAS, in a reply to a question by a parliament member.
“Data on the total cryptocurrency holdings of the Singapore public are not available, as these involve transactions with both Singapore-based and overseas service providers. It is therefore not possible to determine the proportion of cryptocurrency holdings that the public has obtained through MAS-licensed DPT service providers.”– Tharman Shanmugaratnam, Chairman of the Monetary Authority of Singapore
Shanmugaratnam also warned investors that they could lose all funds they invested in crypto due to the significant market volatility. Because of that, the central bank leader cautioned the general public against crypto investing.
“MAS has continued to reiterate its warnings that retail investors should not trade in cryptocurrencies. The prices of cryptocurrencies fluctuate wildly and investors stand to lose all the monies they have put into cryptocurrencies.”
Join our Telegram group and never miss a breaking digital asset story.
Crypto Sell-Off Prompts MAS to Impose Tighter Regulations on Retail Trading
But MAS’ warnings against crypto investing shouldn’t come as a surprise as the city-state’s central bank has significantly tightened its regulatory policy concerning crypto assets in recent months. This shift comes as a result of the steep sell-off in the crypto market this year prompted by rampant inflation, interest rate hikes, and collapses of several crypto projects.
One of the events that pushed MAS to tighten crypto regulations is the bankruptcy of the digital asset hedge fund Three Arrows Capital (3AC) earlier this year. Other firms that failed to survive the ongoing crypto winter include Celsius Network and Voyager Digital, among others.
The market turmoil, exacerbated by the implosion of the algorithmic stablecoin TerraUSD (UST) and LUNA in May, led to massive losses suffered by retail investors. As a result, the MAS said last month it is considering imposing certain limitations on the use of leverage and credit facilities by retail investors.
Do you expect MAS to ease regulations after the crypto bear market ends? Let us know in the comments below.