See More

Singapore Central Bank Issues Final Guidelines for Crypto Payment Providers 

2 mins
Updated by Ciaran Lyons
Join our Trading Community on Telegram

In Brief

  • The Monetary Authority of Singapore (MAS) has issued final guidelines for crypto payment providers, detailing measures related to consumer access.
  • MAS mandates that retail investors must pass a risk awareness assessment before investing.
  • Singapore-based crypto exchange DigiFT has received key regulatory approvals from MAS, becoming the first exchange with an AMM.
  • promo

The Monetary Authority of Singapore (MAS) has published the final part of its consultation response on conduct and consumer protection obligations for crypto businesses. The report provides central bank feedback on a paper on a crypto regulatory framework. 

On Dec. 5, Chainalysis reported that the Singapore central bank released a report detailing its responses on crypto regulations for digital asset businesses in the country. 

Singapore Clarifies Crypto Regs 

In October 2022, MAS issued a consultation paper proposing regulatory measures for what it called digital payment token service providers (DPTSPs).

The response covers measures relating to consumer access, business conduct, managing technology, cyber risks, and implementation timelines.

MAS stated that all retail investors must pass a risk awareness assessment before investing. Additionally, DPTSPs are not permitted to offer incentives to attract retail investors.

The companies will not offer debt-financed or leveraged crypto transactions to retail traders.

Crypto payment firms should not trade on their own platforms and need to segregate activities such as market making and acting as a broker. 

Moreover, crypto firms must identify and mitigate conflicts of interest appropriately and disclose token listing and governance policies to clients.

Read more: Top 4 Crypto Passive Income Ideas That Really Work In 2023

Additionally, DPTSPs can list self-issued tokens, but they must disclose the appropriate information to customers.

Companies must also provide high systems availability, recoverability, and incident reporting. Controls to protect user information must also be implemented, the MAS stated. 

The central bank stated that it will mandate these requirements in early 2024 with a nine-month transition period for implementation.

DigiFT Gets Regulatory Approval 

In related news, Singapore-based crypto exchange DigiFT has received key regulatory approvals from the MAS.

DigiFT was granted a Capital Markets Services (CMS) license on Dec. 5 and a Recognised Market Operator (RMO) license on Dec. 1.

Moreover, it is the first exchange with an automatic market-making (AMM) mechanism to go through MAS’ fintech sandbox and receive full licenses. DigiFT CEO Henry Zhang explained: 

“The MAS admits innovative business models to their regulatory sandbox to observe such models within a controlled environment, and one needs to graduate from the sandbox in order to receive full licenses,” 

Moreover, DigiFT will offer secondary trading of security tokens backed by real-world assets (RWA).

Fintech firm Ripple and Stablecoin issuer Circle were granted a Singapore Payment Institution Licenses in June. 

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

profile.jpg
Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
READ FULL BIO
Sponsored
Sponsored