Singapore, November 23, 2023-The Monetary Authority of Singapore (MAS) has introduced stringent regulations for digital payment token (DPT) service providers, with these measures scheduled to be implemented in mid-2024. In a bid to protect investors and promote market stability, the MAS unveiled a series of key measures.1 One of the significant changes involves the prohibition of DPT service providers from accepting payments made through locally issued credit cards or charge cards. This measure aims to prevent impulsive and potentially risky investment decisions by retail consumers.
Additionally, retail customers will face restrictions on engaging in leverage or margin trading activities concerning DPTs. This restriction is designed to safeguard retail investors from substantial financial losses that may arise due to amplified market fluctuations.
To enhance customer protection, DPT service providers will be required to implement stricter measures, including clear risk disclosure, suitability assessments, and continuous monitoring of customer transactions. These steps aim to ensure that retail investors are well informed and protected when dealing with DPTs.
Furthermore, DPT service providers must segregate customer assets by holding them under a statutory trust arrangement. This ensures that customer assets remain legally distinct from the provider’s own assets, minimizing the risk of misappropriation or loss in the event of insolvency.
Lastly, DPT service providers are mandated to adhere to minimum technology and cyber risk management requirements. This includes implementing robust frameworks to guard against hacking, data breaches, and other cybersecurity threats.
These measures are in place to protect customer funds and sensitive information from potential risks.
- CNBC: https://www.cnbc.com/2023/11/24/singapore-to-tighten-crypto-regulations-for-retail-customers.html[↩]
