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The Monetary Authority of Singapore could introduce “customer suitability tests” in an effort to discourage people from trading cryptocurrencies.

Despite years of warnings and measures, Singaporeans are increasingly trading cryptocurrencies, MAS managing director Ravi Menon said during a speech on Monday.

Many people seem to be “irrationally oblivious” about the risks of cryptocurrency trading, said Menon.

In January 2022, the regulator restricted digital asset players from promoting cryptocurrency services at public spaces, leading to the dismantling of Bitcoin ATMs and the removal of advertisements in MRT stations.

Now, it is considering further measures, adding “frictions” on retail access to crypto.

“These may include customer suitability tests and restricting the use of leverage and credit facilities for cryptocurrency trading,” said Menon.

However, Menon has ruled out a ban on retail trading, conceding that such a move would not work in a borderless world.

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