BAS Opposes Singapore’s Proposed Ban on Token Lending to Retailers

• The Blockchain Association of Singapore (BAS) has opposed the Monetary Authority of Singapore’s (MAS) proposal to ban token lending by cryptocurrency companies to retail customers.
• The BAS argued that such incentives should be regulated rather than banned and proposed that they could be designed as „gifts that are not linked to financial purchases.“
• Singapore has also called for restrictions on cryptocurrency companies lending or using their coins to generate yield.

The Blockchain Association of Singapore (BAS) has recently pushed back on the proposed prohibition by the Central Bank of Singapore, the Monetary Authority of Singapore (MAS), on token lending by cryptocurrency companies to retail customers. The BAS argued that such incentives should be regulated rather than banned, and proposed that they could be designed as „gifts that are not linked to financial purchases“.

The MAS had proposed to ban token lending by cryptocurrency companies to retail customers as part of an effort to ensure consumer protection. The BAS, a significant cryptocurrency lobby group, however, believes that the decision would be overly restrictive and would require retailers to obtain funding from unregulated cryptocurrency firms. It also argued that lending tokens could provide funds for customers and pointed out that the interest rates on digital payment tokens can be attractive.

In addition to the proposed prohibition on token lending, Singapore has also called for restrictions on cryptocurrency companies lending or using their coins to generate yield. This would mean that individuals would not be able to take out loans to purchase tokens. The BAS agreed that there should be some limitations on individuals borrowing money from companies to buy cryptocurrency, but it opposed the complete ban on lending.

The Blockchain Association of Singapore has therefore urged the MAS to consider their alternative proposals and to ensure that their regulations are not overly restrictive. They believe that the proposed regulations should be designed to protect consumers from the potential risks associated with cryptocurrency trading, but should also take into account the potential benefits that the technology can provide.

Overall, the MAS’s proposed regulations are aimed at protecting consumers from fraudulent activities, but the BAS believes that its proposed alternatives could also provide consumer protection without overly restricting the cryptocurrency industry. It will be interesting to see what the MAS’s final decision will be and how it will impact the cryptocurrency industry in Singapore.