Singapore Wants to Introduce New Laws Restricting Retail Crypto Trades
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Singapore says it is considering introducing new laws that will make it harder for retail crypto investors to trade digital assets during this time. The country’s regulators say they are really concerned about the ongoing risks associated with virtual money.
Singapore is worried about crypto trading
Singapore has stated that many people who participate in crypto do so only because of the fear of missing out or “FOMO”. Regulators say people are “aware” of the risks and don’t consider everything that could happen before trading.
Despite the heavy warnings and measures the country has issued to its citizens, Singapore says that many residents continue to use crypto without doing their homework, and that this has ultimately led to serious inconvenience and problems for the country’s residents. callus.
Ravi Menon, CEO of the Monetary Authority of Singapore (MAS), explained at a recent event that people are simply out of touch when it comes to the problems that involvement in the crypto industry might cause. He said:
They seem to be irrationally ignorant of the risks of cryptocurrency trading… These may include customer suitability tests and limiting the use of leverage and credit limits in cryptocurrency trading.
In fact, crypto trading has had some serious problems along the way, the biggest of which is the amount of crime that has been seen in the space. For example, Mt. Gox and Coincheck are often considered the biggest examples of crime in the industry. Mt. Gox happened in Japan in February 2014. As a now condemned and notorious crypto exchange, more than $400 million worth of BTC funds disappeared practically overnight. Very little of this money is ever recouped or recovered.
Coincheck happened just under four years later. Also in Japan, a digital currency trading platform lost more than half a billion in digital currency assets. It was this event that finally prompted Japanese regulators to step in and start policing crypto activity within the country’s borders.
There are too many scams
But the problem isn’t just digital currency exchange hacking. A large number of scams have also penetrated the space, a great example of which are romance scams. The scenario should be relatively familiar at this point considering how many times it has been reported. Someone is pretending to be a real person on a dating app or site. From there, they build a relationship with someone and then begin to entice them to participate in the digital currency trading site.
When this happens, investors start to see their money go up and they get totally excited about what’s going on. However, when they try to withdraw some of this money, they are either unable to access it or are asked to pay more.