Singapore recently took a significant step in regulating Digital Payment Token (DPT) service providers with the unveiling of the comprehensive set of proposed regulations aimed at establishing minimum technology and cyber risk management standards for DPT service providers.
These regulations which will be rolled out in phases commencing mid-2024 are expected to offer a structured framework while allowing a transitional period for providers to adhere to these directives effectively.
MAS said that it is committed to offering guidance to DPT service providers for seamless implementation. The measures encompass various aspects, such as the identification, mitigation, and transparent disclosure of potential and actual conflicts of interest.
Additionally, providers will be required to publish detailed policies, procedures, and criteria governing the listing of DPTs, as well as establish robust mechanisms to handle customer complaints and disputes.
To discourage cryptocurrency speculation among retail customers, DPT service providers are also tasked with implementing several key directives.
These include assessing a customer’s risk awareness before granting access to DPT services, refraining from offering incentives for cryptocurrency trading, and abstaining from providing financing, margin, or leverage transactions.
Moreover, they are prohibited from accepting locally issued credit card payments and must restrict the value of cryptocurrencies in determining a customer’s net worth.
The regulations also highlight the need for DPT service providers to ensure the high availability and recoverability of their critical systems.
More from OMY: New chart reveals what’s blocking Singaporeans from investing in crypto