- MAS Regulations: The Monetary Authority of Singapore (MAS) announced new regulatory measures to discourage retail speculation in cryptocurrencies. Retail customers are now prohibited from buying cryptocurrencies with locally issued credit cards.
Key Regulatory Measures
- Consumer Access and Business Conduct: The new regulations include measures for business conduct and consumer access designed to limit potential harm to retail customers. Retail customers are defined as those who are not accredited or institutional investors.
- Additional Provider Requirements: Digital Payment Token (DPT) service providers must assess a customer’s risk awareness to access DPT services, refrain from offering incentives for cryptocurrency trading, and avoid providing financing or leverage transactions. They must also limit the value of cryptocurrencies in determining a customer’s net worth.
Technology and Cyber Risk Management
- System Requirements: The MAS will require DPT service providers to maintain high availability and recoverability of their critical systems, aligning with current requirements imposed on financial institutions.
- Guidance for Service Providers: The MAS plans to issue guidance for DPT service providers, including identifying and mitigating conflicts of interest, publishing policies and criteria for listing a DPT, and establishing procedures to handle customer complaints and disputes.
Conclusion
These regulatory measures by the MAS reflect a cautious approach to managing the risks associated with cryptocurrencies. They aim to ensure customer protection and maintain the integrity of the financial system while acknowledging the evolving landscape of digital finance.
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