Token

In the rapidly evolving cryptocurrency landscape, Singapore once again took a strong stance to enhance customer protection and mitigate risk. Recently, on November 23, 2023, the Monetary Authority of Singapore (MAS) finalized its regulatory approach for Digital Payment Token (DPT) service providers in the country. Consumer access safeguards 
This move came by Asia’s crypto Singapore amid the Binance fiasco, this comprehensive framework addresses business conduct, customer access, along cyber risk management for the entities involved in digital token services, as per MAS. 
To protect retail customers and prevent speculative behavior in cryptocurrency trading, MAS outlines specific measures for DPT services.&nbsp; 
These include considering customers’ risk awareness before granting access, prohibiting incentives for cryptocurrency trading, avoiding the provision of financing or leverage transactions, and restricting payment methods, such as not accepting locally issued credit card payments.&nbsp; 
Recognizing the importance of technology and cyber risk management, MAS orders DPT service providers to ensure the high availability and recoverability of critical systems. Providers are also required to align with existing standards imposed on the financial institutions to enhance overall cybersecurity. MAS urges consumer caution 
This significant move by MAS appears as it has been distancing itself from speculation in digital assets after the collapse of <a href="https://news.todayq.com/mas-imposes-9-year-ban-on-ceo-director-of-three-arrows-capital/">hedge fund Three Arrows Capital</a>. Earlier MAS has also taken strict action against <a href="https://news.todayq.com/singapore-bans-crypto-lending-and-staking-for-retail-investors/">lending and staking</a> and restricted retail participation. 
However, the regulatory measures are set to be implemented through phased regulations and guidelines, scheduled to take effect from mid-2024. This approach provides DPT service providers with a reasonable transition period to implement and adapt to the new regulatory requirements. 
While the regulations aim to protect consumer interest, Ms. Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, emphasizes the speculative and risky nature of cryptocurrency trading. Consumers are urged to exercise caution and avoid dealing with unregulated entities, including those based overseas. 
© Todayq News

Singapore’s watchdog issues rules for digital tokens after Binance fiasco

Todayq News

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