Singapore further tightens crypto regulations and mandates the crypto industry to implement consumer protection measures.
On Nov 23, the Singapore Monetary Authority (MAS) released a final tranche of its comprehensive regulations for Digital Payment Token (DPT) providers. This section primarily deals with consumer protection measures, aimed to discourage retail customers from engaging in risky crypto trading activities.
The new rules call for DPTs to reject credit card payments and eliminate incentives for crypto trading. DPTs are also mandated to stop offering financing, margin, or leverage crypto transactions. In addition, they must assess their customers’ risk tolerance levels and restrict the valuation of crypto assets in determining a customer’s net worth.
In addition to these directives, MAS specified that DPTs must actively mitigate and disclose any potential or actual conflicts of interest within their operations. These providers are also required to publicly outline the policies, procedures, and criteria governing the listing of digital assets, and must establish effective protocols for managing customer complaints and resolving disputes.
In addition, the regulator outlined the necessity for DPT service providers to maintain redundant and recoverable critical systems, aligning with the stringent requirements imposed on financial institutions.
The rules are set to be gradually phased in starting mid-2024.
Singapore has been at the forefront of the crypto industry for quite some time now, so it is likely we are seeing a trend that will be followed in other jurisdictions.
by Igor Pelipenko, OrdinalsGoods
OrdinalsGoods is a team of professionals with over a decade of experience in the financial and IT industries, dedicated to innovation and the implementation of transformative solutions in the field of digital finance.
