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Bitcoin

Singapore May Soon Require Retail Investors To Take Test Before Trading Crypto (techcrunch.com) 18

Singapore may soon require retail investors to take a test and not use credit card payments and other forms of borrowing for trading cryptocurrencies, the central bank proposed on Wednesday in a series of stringent measures as the island nation looks to make citizens aware of the risks surrounding volatile assets. From a report: The Monetary Authority of Singapore said in a set of consultation papers that it's worried that many retail customers may "not have sufficient knowledge of the risks of trading" digital payment tokens, which may lead them "to take on higher risks than they would otherwise have been willing, or are able, to bear." The central bank also proposed that crypto firms licensed under the nation's Payments Services Act should not be allowed to lend to retail investors in a move that could topple many firms' businesses.
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Singapore May Soon Require Retail Investors To Take Test Before Trading Crypto

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  • by splutty ( 43475 ) on Wednesday October 26, 2022 @10:53AM (#62999599)

    And turns out you're too stupid to invest in crypto, so you're the perfect person to invest in crypto.

    • Testor: "Do you want to invest in cryptocurrency?"
      Investor: "Yes"
      Testor: [SMACK]
      Testor: "Do you want to invest in cryptocurrency?"
      Investor: "Yes"
      Testor: [SMACK]

      ...

      Testor: "Do you want to invest in cryptocurrency?"
      Investor: "No"
      Testor: "Ok. You pass."

  • by Opportunist ( 166417 ) on Wednesday October 26, 2022 @10:55AM (#62999603)

    Could we have a show of hands who is still interested in more crypto stories? It could be me and I'm just some old fart who simply has zero interest in tulips anymore, and this is all the craze with the cool people, even now after we've sufficiently established that it's all just a huge ponzi scheme, of course.

    So I'd really like to know, is there actually people interested in another batch of these stories? There's currently 4 stories on the frontpage that deal with crypto currency in some aspect, and none of them with the technical angle, it's all about economics and politics. Yes, we know that it's a ponzi scheme and yes, there's politicians that try desperately to appeal to some tulip farmers that try to make the bigger fool theory still come true somehow. We got that.

    Can we finally move on to, ya know, news for nerds, stuff that matters? Not that it's a theme anymore, but could we just try to pretend from time to time?

    • by splutty ( 43475 )

      Slashdot is run by people that need to see crypto stories to keep it in the news.

      So what we think is fairly irrelevant. But the stories are getting really really boring. It's like watching little kids play in a sandbox full of shit.

      • the stories are getting really really boring. It's like watching little kids play in a sandbox full of shit.

        It's like bullies took over the sandbox, and are shitting in it. And if you call them on their behavior, the rules will be changed so you can't even say their name. (They literally put the name of their company into the prohibited words filter...)

    • by endus ( 698588 )

      I don't need 4 stories on the main page, I don't have any crypto right now, but I'm definitely not convinced cryptocurrencies are no longer relevant.

      We're living in rather tumultuous times. The economic situation in the US and the dollar's status as the default reserve currency are not a given.

      I think there is also interest in crypto in the financial services industry and in the government...I don't mean investing in Bitcoin, but in cryptocurrency in general.

      It could all dry up and disappear tomorrow, no d

      • In a tumultuous time, the very last thing I need is a highly volatile, highly risky endeavour. The main reason the finance industry has some interest in crypto is that they are very, very potent when it comes to finances and the only thing holding them back from taking over control of the market is government oversight. And crypto currency promises that: Financial anarchy. The golden rule. He with the gold makes the rule.

        Anarchy is never the absence of rule. Human nature does not allow that. Anarchy always

    • It's tiresome, but reading all the right wing commenters (and other idiots who think they're smart just because they're "nerds" who know how to use computers) trying to keep defending crypto because they've been caught up in the scam is an entertainment.
      • "Hey, there HAS to be a bigger idiot than me! There just HAS to be! I'm the smartest being in the universe, I wisely invested in crypto!"

  • I'm of mixed feelings on this. If it's a relatively simple test about the risks and unique features of crypto then I'm okay with it. If it's like the Series 7 exam here in the states (the exam required to sell securities) then I strongly oppose it. I don't particularly care that the test is hard but sitting for the Series 7 requires sponsorship from a financial firm. That's not cool. The other way they could do this would be to copy the US "qualified" or "accredited" investor test. This is defined as
  • ... and instructed to pour the piss out. They are also advised that clarifying instructions are inscribed on the heel. Pass rate is about 60%
  • Margin trading stocks and options can be even riskier. For example, suppose a retail idiot sells a dozen puts on a stock they think is going up but it hard crashes down 10% to 15%... and they don't have the money to buy off those calls to stop the bleeding. The brokerage will then start liquidating their positions to cover which means a potential tax situation spiral on top of it. And don't even get started on selling naked calls and the dangers there, or just straight up margin trading by normal people.

    • by splutty ( 43475 )

      Most of what you describe is illegal to do at a personal level.

      And if you can find a broker to do these trades for you, you bet they make you read and sign a document that would scare the kilt off a Scotsman.

      • Most of what you describe is illegal to do at a personal level.

        * Margin trading accounts are completely open to retail investors.
        * Selling puts is as easy as applying for options trading, which is again open to retail investors with minimal paperwork.
        * Selling naked calls is also easy at many brokerages if you have a decent amount of assets.

        FFS, even the proudest retards on WSB know all of this. It's part of why they cycle through "life-changing wealth" to "life-changing losses" and back so fast.

    • by splutty ( 43475 )

      I'm absolutely convinced all these things shouldn't exist in the first place, not even for 'well informed' players. They're not even theoretically a good thing.

  • The argument about tulips aside, what is really needed for people who want to toss money at cryptocurrency items are some lessons which are not really taught:

    1: The fact that cryptocurrency is an extremely risky investment, with -zero- guarantees. Yes, someone might say that "oh yeah, Bitcoin will get a TARP bailout", but in reality, that is not the case.

    2: The difference between a custodial and non-custodial wallet. Yes, an exchange may function similar to a bank... but it is not a bank, and can block

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