As it became known, the Central Bank of Singapore and the Monetary Authority of Singapore are considering introducing stricter rules for retail crypto investors. "MAS considers cryptocurrencies unsuitable for use as money and extremely dangerous for retail investors," the head of the central bank said.
At the Green Shoots seminar, Ravi Menon, Managing Director of the Monetary Authority of Singapore, spoke in more detail about the planned regulation of cryptocurrencies. He outlined five risk areas in digital assets that the central bank's regulatory approach focuses on.
First, the bank, like all other regulatory authorities in different countries, is struggling with money laundering and terrorist financing risks. Another equally important issue is the management of technologies and risks associated with cybersecurity. It is also important to develop the right protection mechanism against harm to retail investors. This year, after another major collapse of the cryptocurrency markets and the collapse of several hedge funds, investors lost a huge amount of money. And I'm not talking about how much money was stolen with the help of cyber attacks.
The Central Bank of Singapore is also concerned about the stability of the so-called stablecoins. The collapse of one Terra Luna and its TUSD stablecoin led to billions of losses for many players in the cryptocurrency industry. Well, the most important task implemented within the framework of all of the above is to mitigate potential risks to financial stability.The head of the Central Bank noted: "MAS considers cryptocurrencies unsuitable for use as money and extremely dangerous for retail investors. Cryptocurrencies lack three basic qualities of money: a means of exchange, a means of preserving value, and a unit of account."
New regulatory measures will make it more difficult for retail investors to trade cryptocurrencies, further relieving them of risks. They will include checking the suitability of clients and limiting the use of leverage and credit funds for cryptocurrency trading.
However, as experts expect, such a ban on retail cryptocurrency trading is unlikely to work. Considering that the world of cryptocurrencies is limitless, and having only a mobile phone, Singaporeans will have no problems accessing any cryptocurrency exchanges worldwide. They can buy or sell any number of cryptocurrencies.
But even despite all this, at present, the MAS development strategy makes Singapore one of the most favorable jurisdictions for digital assets.
Returning to the topic of the technical picture, bitcoin buyers managed to return to the level of $19,966 yesterday and are now seriously aiming for further recovery to the area of $20,788. Considering what a bull market we are currently seeing, especially after pleasant prices against the recent correction, demand will likely only increase. The bulls' focus is now on the near-term support of $20,800. In the case of a breakout in this area, you can see a dash up to $21,540. To build a larger upward trend, you must break above the resistance levels of $22,180 and $22,670. If the pressure on bitcoin returns, it is obvious that the bulls will try to protect the support of $20,007. Its breakdown will quickly push the trading instrument back to $19,100 and pave the way for an update of the $18,620 level.
Ether has shot up very strongly, and the nearest target of buyers in the current conditions is the resistance of $ 1,605. Its breakdown will lead to a change in the market direction to an upward one, which will open up the possibility of updating the longer-range targets of $1,667 and $1,743. When the pressure on the trading instrument returns, buyers need to re-manifest themselves around $ 1,530, as only this will keep the market under their control. A break in this area will push ether back to $1,476 and $1,418.
