- Singapore MAS is charging forward with its commitment to the crypto industry.
- The financial authority has unveiled new guidelines for crypto service providers.
- The measures are set to come into effect in the coming year.
Singapore has maintained a proactive approach to regulating the crypto industry, aligning with its vision to harness the many benefits of the evolving ecosystem and establish itself as an attractive hub.
In line with this, the Monetary Authority of Singapore (MAS) has issued new regulatory measures for digital assets.
Guidelines For Digital Payment Token Service Providers
On November 23, MAS unveiled the first tranche of its regulatory measures for digital payment token service providers operating within Singapore.
MAS emphasized that service providers, such as cryptocurrency exchanges and trading platforms, are required to discourage cryptocurrency speculation. This involves assessing the level of knowledge among retail customers and restricting the lending and staking activities of platforms.
To mitigate the risks associated with digital assets and limit potential consumer harm, service providers must prohibit margin or leverage options for clients. Additionally, they are not permitted to accept payments through locally issued credit cards.
In terms of business conduct, digital payment token service providers must Identify, mitigate, and disclose potential and actual conflicts of interest, as well as publish policies that govern the listing of digital assets. They are also required to establish robust policies and procedures to handle customer complaints and resolve disputes.
MAS Deputy Managing Director (Financial Supervision) Ms Ho Hern Shin issued a cautionary statement to investors, urging them to remain vigilant in dealing with digital assets.
“DPT service providers have the obligation to safeguard the interests of consumers who interact with their platforms and use their services. While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.”
The regulatory measures are slated for full implementation in 2024 to provide an ample transitional period for service providers.
To find out more about Singapore’s asset tokenization initiative, read here:
Singapore Drives Asset Tokenization Campaign with New Pilots
More exchanges are securing operational licenses in Singapore. Read more:
Upbit Wins Preliminary Approval for MPI-License in Singapore