Singapore May Soon Require Retail Investors To Take Test Before Trading Crypto

Singapore may soon require retail investors to take a test and not use credit card payments and other forms of borrowing for trading cryptocurrencies, the central bank proposed on Wednesday in a series of stringent measures as the island nation looks to make citizens aware of the risks surrounding volatile assets.

The Monetary Authority of Singapore said in a set of consultation papers that it’s worried that many retail customers may “not have sufficient knowledge of the risks of trading” digital payment tokens, which may lead them “to take on higher risks than they would otherwise have been willing, or are able, to bear.” The central bank also proposed that crypto firms licensed under the nation’s Payments Services Act should not be allowed to lend to retail investors in a move that could topple many firms’ businesses.