According to Bloomberg, the Monetary Authority of Singapore (MAS) released its final response document on Thursday (23rd) regarding feedback on proposed regulations for Digital Payment Token (DPT) service providers. The document proposes additional rules to further strengthen the crackdown on retail speculation.
In its statement, MAS stated that DPT service providers will not be allowed to provide any incentives for cryptocurrency retail transactions, nor offer financing, margin, or leverage trading. Platforms will also not be able to accept credit card payments issued locally.
MAS has also expanded the scope of retail regulations to include all investors, “regardless of residency.” Previously, its retail restrictions only applied to investors residing in Singapore.
MAS also explicitly stated that promotions such as referrals, “learn and earn” programs, and similar incentives will be restricted. Regulatory measures for DPT services will be implemented in phases starting from mid-2024.
Previous measures restricting retail participation in Singapore included plans to ban lending and staking services. However, Ho Hern Shin, Deputy Managing Director of MAS’ Financial Supervision Division, stated in a statement that even these proposed measures “cannot prevent customers from suffering losses due to the speculative and high-risk nature of cryptocurrency trading,” and people should not transact with unregulated entities, including those headquartered overseas.
Other upcoming requirements to be implemented by MAS include maintaining high availability and recoverability of key systems, similar to what banks are required to do. The authority also stated that cryptocurrency companies should establish processes for handling complaints and resolving disputes.
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