Singapore recently suggested banning the use of borrowed money to purchase cryptocurrency by retail investors.

Singapore‘s recent proposal on retail cryptocurrency trading may open the door for other competitors to overtake it as the industry leader. The nation recently suggested outlawing retail investors who borrowed money to buy cryptocurrencies.

Hong Kong, however, intends to make retail cryptocurrency trading legal. In a recent interview with Bloomberg Television, Ravi Menon, the head of Singapore’s central bank, discussed his opinions of other financial jurisdictions that are attempting to enter the retail cryptocurrency market.

Menon said they are not looking for competition and Singapore won’t get in their way. And harm to retail investors is the main risk.

The announcement comes as various countries attempt to establish themselves as cryptocurrency hubs.

The decision made by Singapore is also a response to the events that took place after the collapse of Terra during the bear market. During the bear market, the decline of Celsius, 3AC, and Hodlnaut caused a great deal of suffering.

Menon added that he believes such stringent regulatory measures are required for retail access to cryptocurrencies. Additionally, he acknowledged that the choice might drive away some businesses and wished them luck.