The Monetary Authority of Singapore (MAS), the nation's central bank and financial regulator, announced the strengthening of regulations.
The Monetary Authority of Singapore (MAS), the nation's central bank and financial regulator, announced the strengthening of regulations geared towards safeguarding individuals and limiting their ability to engage in cryptocurrency trading. The authority has finalized these measures following an extensive yearlong process of public consultation and review.
Starting from mid-2024, the newly introduced rules will forbid cryptocurrency platforms, also known as digital payment token (DPT) service providers, 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 prohibited.
While the MAS aims to protect the interests of customers, it acknowledges that these regulations cannot completely shield them from the inherent risks associated with speculative and highly volatile cryptocurrency trading. Ho Hern Shin, the MAS deputy managing director for financial supervision, urges consumers to exercise caution and avoid dealing with unregulated entities, including those operating internationally.
She said:
“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.”
These new measures will be applicable to all retail customers, regardless of their place of residence, and will encompass individuals who are not accredited or institutional investors. Accredited investors are defined as those who possess over $1 million in net financial assets.
MAS Managing Director Ravi Menon recently criticized cryptocurrencies for their failure as effective digital money, saying “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.”
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