Debated in Parliament on 28 Nov 2022.
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.
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.
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.
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.
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.
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.]
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