MAS Strengthens Cryptocurrency Regulations for Singaporean Retail Clients

24 Nov, 2023

MAS Strengthens Cryptocurrency Regulations for Singaporean Retail Clients

The Monetary Authority of Singapore (MAS) is set to implement an array of measures to enhance regulations for digital payment token (DPT) service providers in Singapore. The new rules include prohibiting payments via locally issued credit cards and aim to curtail potential consumer harm associated with cryptocurrency transactions.

Announced on Thursday (Nov 23), these measures represent MAS's response to feedback received on its proposed regulations. They encompass various aspects, such as business conduct, consumer access restrictions, and minimum technology requirements, all aimed at mitigating potential risks for consumers.

Initially proposed in October 2022, MAS outlined measures to safeguard customers engaging in cryptocurrency trading, covering consumer access, business conduct, and technology risks. The consultation process, initiated in July, focused on requirements for asset segregation and custody.

The finalized measures, to be rolled out in phases starting from mid-2024, explicitly bar service providers from accepting payments through locally issued credit or charge cards. MAS's rationale behind this move is to restrict retail customers' access to debt financing via credit cards, aligning with the intent to limit cryptocurrency purchases made on credit.

These regulations reflect MAS's commitment to ensuring a safer and more regulated environment for cryptocurrency trading while addressing potential risks associated with consumer transactions in the digital asset space.