- MAS has published business conduct and consumer access measures for Digital Payment Token (DPT) services in Singapore.
- Reportedly, the regulatory framework is set to be implemented in phases starting in mid-2024.
- The proposal also states the minimum technology and cyber risk management requirements for DPT service providers.
Today, the Monetary Authority of Singapore (MAS) announced that they have published business conduct and consumer access measures for Digital Payment Token (DPT) services in Singapore to limit potential consumer harm.
This move underscores MAS’s commitment to bolster consumer protection and ensure the robustness of Singapore’s financial ecosystem. The regulatory framework, set to be implemented in phases from mid-2024, encompasses crucial dimensions such as business conduct, consumer access, technology, and cyber risk management.
MAS places a premium on transparency and ethical practices within the digital payment token industry. DPT service providers are mandated to identify, mitigate, and transparently disclose potential and actual conflicts of interest.
Moreover, providers are required to publish comprehensive policies, procedures, and criteria governing the listing of Digital Payment Tokens, fostering transparency and fairness in the market. An additional emphasis is placed on establishing effective policies and procedures to address customer complaints and resolve disputes, further fortifying consumer protection.
With regards to ‘Consumer Access Measures’, MAS calls upon DPT service providers to assess a customer’s risk awareness before granting access to DPT services. The regulations discourage the offering of incentives for trading in cryptocurrencies and prohibit financing, margin, or leveraged transactions. The guidelines also restrict the acceptance of locally issued credit card payments and limit the value of cryptocurrencies in determining a customer’s net worth.
In a statement, Ms. Ho Hern Shin, Deputy Managing Director (Financial Supervision) at MAS, said, “DPT service providers have the obligation to safeguard the interests of consumers who interact with their platforms and use their services.”
“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. We urge consumers to remain vigilant and exercise utmost caution when dealing in DPT services, and to not deal with unregulated entities, including those based overseas.”