Singapore’s Monetary Authority of Singapore (MAS) is reportedly toughening up its regulations on cryptocurrency to protect retail customers and investors in the country. The country's de facto central bank and financial regulator is trying to shield them from the risky nature of crypto trading.

Then again, MAS noted that while the proposed new rules provide protection, they cannot cover customers’ losses related to cryptocurrency. Moreover, the measures will include the prevention of crypto service providers in the country from accepting payments via locally issued credit cards.

Proposed Measures for Crypto Deals in SG

Singapore said it plans to implement stiffer regulations for cryptocurrency service providers. MAS said this move comes after getting feedback from its suggested rules, as per CNBC.

Once activated, the measures will also prohibit crypto service providers from offering incentives to trade in cryptocurrencies. It will not be allowed to provide financing and leverage transactions for retail customers.

Crypto service providers will also be required to publish procedures, policies, and criteria for listing digital payment tokens. They must also set up procedures that will specifically handle customer complaints and fix disputes. MAS expects the finalized version of rules to take effect in certain phases starting in mid-2024.

“DPT service providers have the obligation to safeguard the interests of consumers who interact with their platforms and use their services,” MAS’ deputy managing director of financial supervision, Ho Hern Shin, said in a statement. “We urge consumers to remain vigilant and exercise utmost caution when dealing in digital payment token services, and to not deal with unregulated entities, including those based overseas.”

Exemption From the Rule

Channel News Asia reported that Singapore’s MAS stressed that service providers must consider all customers as retail customers by default with few exceptions. The financial regulator said institutional investors are exempted from this rule. Only certified investors, defined as someone who has at least S$2 million in net personal assets, are excused from the regulations.

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