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Singapore’s regulator has proposed new measures to protect retail traders in cryptocurrencies and stable coins in an attempt to reduce consumer harm.

The city-state’s central bank has put forward options including having investors take a test, prohibiting credit card payments and barring incentives to attract retail customers.

The proposed rules, contained in two consultation papers released by the Monetary Authority of Singapore on Wednesday, would apply to cryptocurrency companies, such as exchanges, licensed under the nation’s Payments Services Act.

The MAS reiterated its view that trading in what it calls digital payments tokens was risky and unsuitable for the general public. “However, cryptocurrencies play a supporting role in the broader digital asset ecosystem, and it would not be feasible to ban them,” it said.

“To reduce the risk to consumers from speculative trading in cryptocurrencies, MAS will require that DPT service providers ensure proper business conduct and adequate risk disclosure.”

The guidelines, which follow a series of high-profile collapses and scandals in the crypto industry globally this year, are open to public consultation until December 21.

Some industry experts said the proposals are too prescriptive and will not be effective.

“The prohibition against purchase of DPTs by credit cards, or by credit could unwittingly encourage retail investors to trade in crypto derivatives, which are largely unregulated,” said Nizam Ismail, founder of Singapore-based Ethikom Consultancy, which advises companies on compliance.

Other experts said that the measures only apply to the relatively small number of parties regulated under the PSA. “The problem of unregulated entities operating in this space in Singapore is not accounted for,” said one analyst.