Singapore’s central bank and financial regulator, the Monetary Authority of Singapore (MAS), has introduced stronger regulations. These measures aim to improve the rules that oversee financial activities in the country.
Singapore’s central bank and financial regulator, the Monetary Authority of Singapore (MAS), has introduced stronger regulations to protect individuals and restrict their involvement in cryptocurrency trading. These measures, finalized after a yearlong process of public consultation and review, aim to enhance safeguards in the cryptocurrency space.
Singapore Implements Stricter Regulations on Cryptocurrency Platforms
Starting from mid-2024, the Monetary Authority of Singapore (MAS) will enforce new rules targeting cryptocurrency platforms, known as digital payment token (DPT) service providers. The regulations will prohibit these platforms from accepting purchases made with locally issued credit cards. Additionally, incentives that encourage individuals to trade digital tokens, such as free trading credits or rewards, will be banned.
While the MAS aims to safeguard the interests of customers, it acknowledges that these regulations cannot entirely protect them from the inherent risks of speculative and highly volatile cryptocurrency trading. Ho Hern Shin, the MAS deputy managing director for financial supervision, emphasizes the importance of consumer caution and advises against dealing with unregulated entities, including those operating internationally. She underscores that, despite these measures, customers may still face losses due to the speculative nature of cryptocurrency trading.
Singapore Broadens Cryptocurrency Regulations to Include All Retail Customers
The recently introduced measures by the Monetary Authority of Singapore (MAS) will apply to all retail customers, irrespective of their place of residence, and will cover individuals who are not accredited or institutional investors. Accredited investors, defined as those with over $1 million in net financial assets, will also be subject to these regulations.
MAS Managing Director Ravi Menon expressed criticism of cryptocurrencies, highlighting their inadequacy as effective digital money. He noted their poor performance as a medium of exchange or store of value, susceptibility to speculative swings in prices, and the significant losses experienced by many cryptocurrency investors.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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