Singapore strengthens regulatory measures for digital payment token services

SINGAPORE, Nov 24 (Bernama) -- The Monetary Authority of Singapore (MAS) has published its final tranche of responses to feedback received on its proposed regulations for Digital Payment Token (DPT) service providers in the republic.

MAS, the central bank, said on its website that the consulted proposals detail business conduct and consumer access measures to limit potential consumer harm.

With regard to business conduct, MAS will issue guidance for DPT service providers to implement measures, which received broad support from a wide range of respondents.

The measures are to identify, mitigate and clearly disclose potential and actual conflicts of interest; publish policies, procedures and criteria that govern the listing of a DPT; and establish effective policies and procedures to handle customer complaints and resolve disputes.

As for consumer access measures, DPT service providers should discourage cryptocurrency speculation by retail customers by, among others, not offering any incentives to trade in cryptocurrencies; and not accepting locally issued credit card payments.

MAS’ regulatory measures on DPT services will be implemented through regulations and guidelines, which will take effect in phases from mid-2024.

“This will provide an adequate transitional period for DPT service providers to properly implement these measures,” it said.

MAS had published the first tranche of consultation responses and proposed legislative amendments regarding customer asset segregation and custody requirements in July 2023.

-- BERNAMA