Singapore’s New Crypto Decision Can Pave Path for Competitors

• Singapore recently proposed to ban crypto purchases for retail investors using borrowed funds.
• Hong Kong is moving in the opposite direction by legalizing retail trading.
• Singapore’s central bank chief Ravi Menon shares a message to others trying to impose easier rules.

Singapore and its recent proposal on retail crypto investing could probably pave the path for other rivals to take the lead in the sector. The country recently proposed imposing a ban on retail investors that borrowed funds to purchase cryptocurrencies.

However, Hong Kong is planning to legalize retail crypto trading. Singapore’s central bank chief, Ravi Menon, recently sat down with Bloomberg Television, where he shared his views on other financial jurisdictions trying to make a move in the retail crypto sector. Menon stated that Singapore won’t stand in their way and that they are not looking for competition.

We don’t set ourselves out to compete with other jurisdictions, especially on regulation. We have to do what is right for us, what is necessary to contain the risks. And the risks are primarily harm to retail investors

The news comes at a time when global nations are trying to implement themselves as crypto hubs. Singapore’s decision is also a follow-up of the incidents that happened during the bear market after the collapse of Terra. The fall of Celsius, 3AC, and Hodlnaut caused great suffering during the bear market.

Menon also said that he thinks it is necessary for such strict regulatory actions for retail access to cryptocurrencies. He also addressed that the decision is likely to push away certain firms and he wishes them good luck.

Singapore and Hong Kong are also hosting conferences next week where FTX’s Sam Bankman-Fried and Binance‘s CZ will be present.