Singapore Intensifies Crypto Regulations for Retail Users.
After receiving feedback on its proposed rules, Singapore is set to tighten regulations for cryptocurrency service providers.
The Monetary Authority of Singapore (MAS) announced measures to enhance business conduct and protect consumers, including banning local credit card payments for crypto, limiting incentives, and prohibiting certain financial transactions for retail customers.
These regulations, effective from mid-2024, aim to ensure consumer protection while acknowledging the inherent risks in crypto trading.
MAS will enforce guidelines for business conduct, requiring providers to outline listing policies and establish robust complaint resolution procedures.
Ho Hern Shin, MAS’s deputy managing director, emphasized the need for consumer protection in crypto dealings but cautioned against the inherent volatility and risks.
MAS continues to warn the public about crypto’s speculative nature and advises caution when engaging with digital token services, urging avoidance of unregulated local and overseas entities.
The Payment Services Act of 2020 laid the groundwork for regulating payment and crypto services, with subsequent reinforcement of supervision. MAS directed firms to safeguard customer assets under a statutory trust and imposed restrictions on lending or staking customer assets.
Further regulations in January 2022 banned public promotion by crypto service providers except on their own platforms.
At the Singapore FinTech Festival 2023, MAS managing director Ravi Menon criticized cryptocurrencies’ performance, citing their inadequacy as a reliable medium of exchange or store of value and highlighting investors’ significant losses due to their speculative nature.
