CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Singapore looks to tighten retail crypto regulations further

By Carine Lee

04:15, 20 July 2022

Monetary Authority of Singapore
Monetary Authority of Singapore – Photo: Shutterstock

Once arguably the most cryptocurrency friendly country in the world, Singapore, is set to expand its cryptocurrency regulations further.

The catalyst has been a number of crypto business failures linked to the city, the most high profile being the collapse of the Terra blockchain, which was registered in Singapore.

“In reality, these so-called “Singapore-based” crypto firms have little to do with crypto-related regulation in Singapore,” the Monetary Authority of Singapore (MAS) said in its annual report.

The report also cited Three Arrows Capital, and Vauld. 

LUNA2 to US dollar

As Singapore tightens its approach to crypto there has been a marked switched among cryptocurrency players towards Dubai with exchanges such as ByBit relocating to the Gulf state.

While high crypto adoption rates have been one factor in Dubai’s rise to crypto prominence, another has been its regulatory approach.

What is your sentiment on LUNA2/USD?

Vote to see Traders sentiment!

Singapore focuses on consumer protection

Previously the MAS had warned Singaporean retail investors of the dangers posed by crypto but it now intends to focus on the institutional market.

Ravi Menon, managing director of the MAS, intends to organise a dedicated Green Shoots seminar to share the central bank’s strategies to develop Singapore as a digital asset hub.


174.39 Price
+2.440% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.2652


67,351.45 Price
+0.510% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00


0.60 Price
+3.070% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168


0.13 Price
+6.990% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.0012872

In the report, issued yesterday, Menon said the seminar “will explain MAS’ position on cryptocurrencies, stablecoins, blockchains, tokenization, smart contracts, digital assets, their risks and opportunities; shortcomings and potential.”

Crypto meltdown

The crypto meltdown this year has exposed the cracks in global crypto regulation, with creditors trying to get their money back from Three Arrows Capital, a collapsed hedge fund which invested in tokens including ETH, SOL and LUNA.

SOL to US dollar

Singapore’s crypto regulation has been focused on money laundering and terrorist financing risks, but it is about to change.

Now the focus will be on reviews and public consultations with international standard-setting bodies and regulators.

This will focus on strengthening regulation in the areas of consumer protection, market conduct and reserve backing for stablecoins.

Singapore is likely to remain a major global crypto hub with some - if fewer - investors, looking to expand their presence in the city state.

Markets in this article

LUNA2.0 to USD
0.4619 USD
-0.0008 -0.180%
Ethereum / USD
3527.87 USD
19.54 +0.560%
Solana / USD
174.3903 USD
4.1345 +2.440%

Related topics

Rate this article

Related reading

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading