The Monetary Authority of Singapore (MAS) has unveiled the conclusive segment of its responses to feedback on proposed regulations for Digital Payment Token (DPT) service providers in the country. The outlined measures aim to address business conduct, consumer access, and technology and cyber risk management for entities operating in the digital payment token space.
In terms of business conduct, MAS will provide guidance for DPT service providers, emphasizing the need to identify, mitigate, and transparently disclose potential conflicts of interest. Additionally, providers are expected to publish clear policies governing DPT listings and establish effective procedures for handling customer complaints and dispute resolution.
Consumer access measures focus on discouraging cryptocurrency speculation by retail customers. This involves assessing a customer’s risk awareness, refraining from offering incentives for cryptocurrency trading, avoiding financing or leverage transactions, refusing locally issued credit card payments, and setting limits on the value of cryptocurrencies in determining a customer’s net worth.
Addressing technology and cyber risk, MAS mandates that DPT service providers maintain high availability and recoverability of critical systems, aligning with existing requirements for financial institutions.
The regulatory framework, set to be implemented through regulations and guidelines, will be rolled out in phases starting mid-2024. This phased approach allows DPT service providers a transitional period to implement the specified measures effectively.
Ms. Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, emphasized the obligation of DPT service providers to safeguard consumer interests. While acknowledging the speculative and risky nature of cryptocurrency trading, she urged consumers to exercise caution, remain vigilant, and avoid dealing with unregulated entities, including those based overseas. The finalized regulatory measures signify MAS’s commitment to fostering a secure and consumer-friendly environment within the digital payment token ecosystem.
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