Singapore Central Bank Wants New Rules for Crypto!

The Monetary Authority of Singapore (MAS) has published its latest announcement regarding proposed regulations for crypto-service providers.

The Central Bank stated in its announcement on Thursday that it maintains requirements for crypto asset businesses, provided they do not offer financing, margin transactions, or trade incentives to prevent speculation among retail customers.

Moreover, MAS also wants crypto asset businesses to refuse locally issued credit card payments and determine customer risk awareness before allowing access to services.

While seeking balance on crypto regulations, Singapore is also trying to attract the industry. This announcement is the second response to feedback on proposed regulations for digital payment token (DPT) service providers in July.

The first phase in July demanded that they deposit customer assets into a legal trust account by the end of the year for safekeeping purposes.

Among less restrictive measures, MAS has eased accreditation investor qualification limits and announced that some crypto assets can be counted to meet the required 2 million Singapore dollars (1.5 million dollars).

MAS also imposes high accessibility and risk event reporting requirements. This is consistent with existing requirements applied to other systemically important financial institutions, but not for payment service providers, which is a special provision for crypto.

After all these decisions, Deputy Chairman responsible for financial supervision, Ho Hern Shin added to his statement, “These business and consumer access measures can help meet this objective, but it cannot isolate customers from losses arising from the inherently speculative and highly risky nature of crypto trading.”

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