After receiving feedback on its proposed regulations, Singapore’s financial authority announced that it will be enforcing stricter regulations for cryptocurrency service providers.
According to a statement released by the Monetary Authority of Singapore on Thursday, the consulted proposals specify consumer access and business conduct measures to minimize potential harm to consumers.
After receiving feedback on its proposed regulations, Singapore’s financial authority announced that it will be enforcing stricter regulations for cryptocurrency service providers.
According to a statement released by the Monetary Authority of Singapore on Thursday, the consulted proposals specify consumer access and business conduct measures to minimize potential harm to consumers.
According to Ho Hern Shin, MAS’s deputy managing director of financial supervision, DPT service providers are obligated to protect the interests of users who engage with their platforms and make use of their services.
Customers cannot be protected from losses resulting from the speculative and extremely risky nature of cryptocurrency trading, even though these business practices and consumer access measures can aid in achieving this goal, according to Ho.
When using digital payment token services, they implore users to be extremely cautious and watchful, and to avoid doing business with unlicensed companies, even those with foreign headquarters.
Since cryptocurrency prices are prone to speculation and volatility, MAS has issued numerous warnings that trading cryptocurrencies is extremely dangerous and not suited for the general public.
First enacted in January 2020, Singapore’s Payment Services Act establishes regulations for both payment services and the public offering of cryptocurrency services.
Singapore has increased oversight of cryptocurrency companies since then. It commanded companies in July to store client assets in a statutory trust by the end of the year. Additionally, companies are prohibited by MAS from facilitating lending or staking the assets of their retail clients.
Crypto service providers were prohibited by Singapore in January 2022 from advertising their services in public spaces or through intermediaries like social media influencers. Only their official corporate websites, mobile applications, and social media accounts may be used for marketing or advertising by cryptocurrency service providers.
Last week, at the Singapore FinTech Festival 2023, MAS managing director Ravi Menon declared that cryptocurrencies have not passed the test of being a legitimate form of digital money.
They haven’t worked well as a store of value or as a medium of exchange. There could be large speculative swings in the prices. Menon stated that a great deal of money has been lost by many cryptocurrency investors.
