Strategy on Cryptocurrency Investments and Protection of Retail Investors
Prime Minister's OfficeSpeakers
Summary
This question concerns the government’s strategy for managing cryptocurrency investments and enhancing protection for retail investors following the collapse of platforms like FTX. Mr Seah Kian Peng, Mr Yip Hon Weng, Mr Desmond Choo, and Ms Mariam Jaafar raised queries regarding risk mitigation, licensing eligibility for exchanges, and the financial impact on local retail users. They sought information on potential safeguards, including limiting retail participation, education on investment risks, and regulations regarding leverage. Senior Minister Tharman Shanmugaratnam, replying for the Prime Minister, informed the House that a detailed response to these queries would be provided at a later sitting. He noted that Deputy Prime Minister Lawrence Wong would address the bankruptcy of FTX and its impact on Singapore’s financial markets in a ministerial statement on 30 November 2022.
Transcript
73 Mr Seah Kian Peng asked the Prime Minister (a) what is the Government's strategy for managing cryptocurrency investments in future, including risk mitigation strategies; (b) what is the extent to which private retail investors have been affected by the recent rout of cryptocurrencies; and (c) whether the Government will do more to educate people about the risks of such investments.
74 Mr Yip Hon Weng asked the Prime Minister (a) whether MAS plans to further tighten cryptocurrency trading by retail investors; (b) whether Singapore retail users should only be allowed to park their assets under a local entity of any cryptocurrency exchange; and (c) what additional safeguards or regulations will be implemented on cryptocurrency firms operating in Singapore to protect local consumers.
75 Mr Yip Hon Weng asked the Prime Minister (a) what factors are taken into account in determining the eligibility of Binance and FTX cryptocurrency trading platforms to operate in Singapore; and (b) whether these factors for licence eligibility will be reviewed.
81 Mr Desmond Choo asked the Prime Minister with the collapse of cryptocurrency trading platform FTX (a) how many institutional and retail investors in Singapore are affected; and (b) whether are there further downside risks in other similar platforms.
83 Ms Mariam Jaafar asked the Prime Minister in light of the recent bankruptcy of cryptocurrency trading platform FTX, when will additional consumer protection rules be considered, including limiting retail participation and rules on leverage when transacting in cryptocurrencies.
Mr Tharman Shanmugaratnam (for the Prime Minister): I thank the Members for the questions. Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Deputy Chairman of MAS, will address these in his reply at the 30 November 2022 Parliament Sitting. [Please refer to "Bankruptcy of Cryptocurrency Trading Platform FTX and Impact on Singapore's Financial Markets, Regulation of Such Asset Class and Strategies of Singapore's Investment Funds", Official Report, 30 November 2022, Vol 95, Issue 78, Oral Answers to Questions section.]