Singapore Monetary Authority Tightens Requirements for Digital Payment Token Services
The Monetary Authority of Singapore (MAS) circulated its regulatory response to feedback received on its proposed regulations for Digital Payment Token (DPT) service providers in Singapore. The move will intensify regulatory measures for domestic DPT service providers. The proposal is part of an ongoing effort by the MAS to mitigate consumer harm caused by cryptocurrency speculation.
Prior to the proposal, MAS had also banned credit lines for the purchase of volatile digital assets as a supplement for the new DPT regulations. Key components of the proposal include regular evaluation of DPT business conduct by the MAS and guidelines for consumer DPT access which focus primarily on cyber risk management. MAS will expect DPT service providers to maintain the availability and recoverability of their critical systems to enable effective implementation of all proposed regulations. The regulations are anticipated to take full effect in mid-2024 after phased implementation beginning at the end of the month.