Singapore Monetary Authority Tightens Crypto Rules For Retail Customers

Bagikan Postingan Ini

Share on whatsapp
Share on facebook
Share on telegram
Share on twitter
Share on email

Singapore Monetary Authority Tightens Crypto Rules For Retail Customers. The Monetary Authority of Singapore (MAS) will tighten regulations for digital or crypto payment token service providers in Singapore, including a ban on payments via locally issued credit cards.

Quoting Channel News Asia written on Sunday (26/11/2023), the Monetary Authority of Singapore on Thursday, 23 November 2023 announced a series of final responses to input received regarding the proposed regulations. The proposal details business conduct and consumer access measures to limit potential consumer harm.

Read Also: Ferrari Accepts Crypto Payments To Buy Cars In The United States

The proposal also sets minimum technology and cyber risk management requirements for crypto service providers.

The Monetary Authority of Singapore proposed measures to protect customers from crypto trading risks in October 2022. The measures also cover three areas including consumer access, business behavior and technology risks.

The Monetary Authority of Singapore published the first phase of consultation responses and proposed legislative amendments in July with a focus on separation requirements and customer-owned asset rights. The regulations that have been formulated will be implemented in stages starting in mid-2024. Based on the regulations set on Thursday, November 25 2023, service providers may not accept credit card payments and credit cards issued locally.

Singapore Monetary Authority Tightens Crypto Rules For Retail Customers. The Monetary Authority of Singapore said that while credit cards are seen as a convenient payment method, they will also allow retail customers easy access to debt financing, contrary to its policy intention to limit crypto purchases on credit.

Service providers should also discourage retail customers from crypto speculation by not offering any incentives for crypto trading. Retail customers refer to customers who are not accredited investors or institutional investors.

Read Also: Australian Police Seize IDR 235 Billion In Crypto From Drug Dealers

“Retail customers often do not have a complete picture of the associated risks and may lack the financial resources to withstand the large losses that crypto markets commonly experience,” MAS said.

Additionally, service providers may not provide financing and margin transactions. Service providers must also limit the value of crypto in determining a customer’s net worth. Apart from that, crypto service providers must also inform customers of the risks involved in accessing their services.

The Monetary Authority of Singapore also sets business conduct rules for crypto service providers. Crypto service providers must identify, mitigate and clearly disclose potential and actual conflicts of interest and publish policies, procedures and criteria governing crypto listing.

Crypto service providers must also establish effective policies and procedures for handling customer complaints and resolving disputes.

Regarding technology and cyber risks, MAS will require crypto service providers to maintain critical system recovery capabilities in line with the requirements currently imposed on financial institutions.

“Crypto service providers have an obligation to safeguard the interests of consumers who interact with their platforms and use their services,” said MAS Managing Director of Financial Supervision, Ho Hern Shin.

Singapore Monetary Authority Tightens Crypto Rules For Retail Customers. “While these business and consumer access measures may help achieve this goal, they cannot protect customers from losses associated with speculative and highly risky crypto trading,”

“We urge consumers to remain alert and careful when transacting with crypto services, and not to transact with unregulated entities including those based overseas,” he added.

Tinggalkan Komentar pada Artikel Ini

Berikan respon dan tanggapan anda

Leave a Reply

Your email address will not be published. Required fields are marked *

Tinggalkan Komentar pada Artikel Ini

Berikan respon dan tanggapan anda

Leave a Reply

Your email address will not be published. Required fields are marked *

error: Content is protected !!