The Monetary Authority of Singapore (MAS), serving as the central financial overseer, has announced the strengthening of regulations. These measures are crafted to safeguard individuals and limit their involvement in cryptocurrency trading. The enhancements in regulation have been concluded following an extensive yearlong process of public consultation and evaluation.
However, Starting in mid-2024, the newly implemented regulations will prohibit cryptocurrency platforms. These platforms, also referred to as digital payment token (DPT) service providers, will be restricted from accepting purchases made with locally issued credit cards.
Furthermore, inducements promoting digital token trading, such as complimentary trading credits or rewards, will be disallowed.
MAS Regulations Address Crypto Risks: Deputy Director Urges Prudence
While striving to safeguard consumer interests, MAS acknowledges that these regulations cannot entirely shield customers. The regulations are designed to address the intrinsic risks linked to speculative and highly volatile cryptocurrency trading.
Ho Hern Shin, Deputy Managing Director for Financial Supervision at MAS, advises consumers. She emphasizes the importance of exercising prudence and refraining from dealings with unregulated entities. This caution extends to entities operating internationally.
She remarked,
“While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading.”
Singapore Enforces Cryptocurrency Trading Rules: MAS Director Criticizes Performance
Furthermore, these newly introduced measures will be universally applicable to retail customers, irrespective of their residency, and will encompass non-accredited or institutional investors. However, accredited investors, classified as those possessing over $1 million in net financial assets, fall within the scope of these regulations.
MAS Managing Director Ravi Menon recently critiqued cryptocurrencies for their inadequacy as effective digital currency, asserting that
“they have performed poorly as a medium of exchange or store of value, their prices are subject to sharp speculative swings, and many investors in cryptocurrencies have suffered significant losses.”