The MAS is considering tightening crypto rules for retail investors by «adding friction» to mass access, according to managing director Ravi Menon in a speech published online. This includes the possible addition of suitability tests as well as restrictions on the use of leverage and credit.

Market volatility this year has led a number of crypto players in the city-state to suffer including exchange Zipmex and lender Hodlnaut. In the latest, fallen Singapore hedge fund Three Arrows’ co-founder Su Zhu reemerged in public to deliver an affidavit defending himself against liquidator claims.

Bans Won’t Work

Despite its concerns, Menon notes that a regulatory ban is not a viable option as it is «not likely to work». 

«The cryptocurrency world is borderless. With just a mobile phone, Singaporeans have access to any number of crypto exchanges in the world and can buy or sell any number of cryptocurrencies,» Menon said in the opening address of a seminar held today.

Singapore continues to rethink mass access to cryptocurrencies following guidelines issued in January to limit trading services providers from public promotion.