The Monetary Authority of Singapore (MAS) has published its final tranche of responses to feedback on proposed Digital Payment Token (DPT) regulations, which are intended to limit potential consumer harm and manage risks in the digital currency sector.
MAS has instructed DPT service providers to cease accepting locally issued credit card payments in a move to limit cryptocurrency speculation among retail customers. This is part of a comprehensive strategy to enhance consumer protection.
The proposed regulations include measures focusing on business conduct and technology and cyber risk management. DPT providers are expected to identify and disclose conflicts of interest, establish transparent policies for listing DPTs, and implement effective systems for addressing customer complaints and disputes.
In addition, consumers must be assessed for risk awareness, trading incentives must be avoided, and financing and leverage options must not be offered. MAS also requires DPT service providers to maintain high system availability and recovery capabilities in line with standards for financial institutions.
To protect customers, MAS urged them to remain vigilant and only deal with regulated entities, such as DPT service providers.
The new regulations and guidelines will be implemented in phases starting from mid-2024, giving DPT service providers sufficient time to adapt.
Lasanka Perera, CEO of Independent Reserve Singapore, one of the first licensed DPT service providers, welcomed the new guidelines. He said they are a positive step towards fostering a more responsible and regulated cryptocurrency industry in Singapore.
Ho Hern Shin, Deputy Managing Director (Financial Supervision), MAS, reminded customers that the new regulations cannot insulate them from losses associated with the speculative and risky nature of cryptocurrency trading.