Singapore further tightens crypto regulations to protect retail investors from speculative risks

The Monetary Authority of Singapore (MAS) has unveiled expanded regulations to safeguard retail crypto users from imaginable risks wrong the burgeoning industry.

In a Nov. 23 statement, the fiscal regulator directed Digital Payment Token (DPT) work providers wrong its jurisdiction to follow circumstantial measures to discourage retail customers from engaging successful speculative crypto activities. These measures encompass rejecting recognition paper payments and eliminating incentives for crypto trading.

Moreover, MAS mandated these work providers to refrain from offering financing, margin, oregon leverage transactions. They indispensable besides measure their customers’ hazard consciousness levels and restrict the valuation of crypto assets successful determining a customer’s nett worth.

In summation to these directives, MAS specified that DPTs indispensable actively identify, mitigate, and disclose immoderate imaginable oregon existent conflicts of involvement wrong their operations. These providers are besides required to publically outline the policies, procedures, and criteria governing the listing of integer assets. Additionally, they indispensable found effectual protocols for managing lawsuit complaints and resolving disputes.

The regulator emphasized the necessity for DPT work providers to support robust and recoverable captious systems, aligning with the stringent requirements imposed connected fiscal institutions.

These recently introduced regulatory measures followed a play of soliciting feedback connected proposals for integer outgo token services initially released successful October of the anterior year. The rules are acceptable to beryllium gradually phased successful starting mid-2024.

Ho Hern Shin, MAS’ lawman managing manager for fiscal supervision, noted that portion these measures safeguard crypto consumers’ interests, “they cannot insulate customers from losses associated with the inherently speculative and highly risky quality of cryptocurrency trading.”

Singapore has been actively fortifying its crypto regulations owed to the illness of respective crypto-related firms, including the interaction of Terraform Labs’ UST algorithmic stablecoin failure connected millions of its citizens.

The station Singapore further tightens crypto regulations to support retail investors from speculative risks appeared archetypal connected CryptoSlate.