The Monetary Authority of Singapore (MAS) has proposed tighter regulations on digital payment token (DPT) service providers in Singapore.
The proposals limit potential consumer harm and require DPT service providers to meet minimum technology and cyber risk management requirements.
DPT service providers are encouraged to dispel cryptocurrency speculation created by retail customers. MAS states that the providers should consider their customer’s rush awareness and should not offer incentives to trade in cryptocurrencies.
MAS expects DPT service providers to maintain availability and recoverability of their critical systems.
MAS states that it will issue guidance for DPT service providers to help implement these new measures. The regulations are set to come into effect in phases from mid-2024.
Ho Hern Shin, deputy managing director at MAS, says: “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.
“We urge consumers to remain vigilant and exercise utmost caution when dealing in DPT services, and to not deal with unregulated entities, including those based overseas.”
