According to Bloomberg, the Monetary Authority of Singapore (MAS) announced on Thursday (23rd) the final response to feedback on the proposed regulations for Digital Payment Token (DPT) service providers in the country, proposing more rules to further strengthen the crackdown on retail speculation.
The MAS stated that DPT service providers will not be allowed to offer any incentives for retail cryptocurrency trading, nor provide financing, margin, or leverage trading, and platforms cannot accept local credit card payments.
Singapore’s MAS has also expanded the scope of regulations for retail investors, including all investors, “regardless of residency.” Previously, retail restrictions only applied to investors residing in Singapore.
The MAS also explicitly stated that promotions, “learn and earn” programs, and similar incentive measures will be restricted. Regulatory measures for DPT services will be phased in starting in mid-2024.
Previous measures restricting retail participation in Singapore included plans to ban borrowing and staking services. However, Ho Hern Shin, Deputy Managing Director of the Financial Supervision Department at the Monetary Authority of Singapore, stated in a statement that even these proposed measures “cannot prevent customers from suffering losses due to the inherent speculative and high-risk nature of cryptocurrency trading,” and people should not transact with unregulated entities, including those based overseas.
Other requirements that the MAS will implement include maintaining high availability and recoverability of critical systems, similar to what banks must do. The authority stated that cryptocurrency companies should also establish processes for handling complaints and resolving disputes.