Singapore is looking to introduce tighter rules for cryptocurrency service providers which looks to impact retail investors. The tighter rules look to limit potential consumer harm by barring crypto service providers in Singapore from accepting locally issued credit card payments, offering incentives to trade in cryptocurrencies and providing financing, margin or leverage transactions for retail customers.
These measures will take effect in phases starting in mid-2024. Regulators will also issue rules requiring service providers to publish policies, procedures and criteria that govern the listing of a digital payment token and establish effective procedures to handle customer complaints and resolve disputes.
At face value I don't have issues with measures to protect users, but it always seems regulations impact retail investors more than institutional investors. Those impacts are usually give institutional investors the edge as they skirt around these same regulations and laws.
Trading crypto is risky, but I believe that everyone should have access to learn and trade even if prices are subject to volatility and speculation. Institutional investors will take advantage of retail no matter, but even with that creating barriers of entry to something that can be learned and done with risk mitigation techniques is crazy.
Singapore has since stepped up supervision on crypto firms. In July, it ordered firms to safe keep customer assets under a statutory trust before the end of the year. The regulation stops firms from staking retail customers’ assets which I think is good and bad. I want people to have access to staking and be informed to opt in or out. In January 2022, Singapore banned crypto service providers from promoting their services in public areas or through third parties such as social media influencers which is a good move. Influencers in the space do more harm than good. We have too many gurus and experts that shill trash. I think some of the regulation Singapore are a move in a good direction, but I also disagree with it as well. I have not see a single regulator come up with a common sense way to regulate the space. I don't have the answers, but I can hope for the best and prepare for the worst.
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