The Financial Authority of Singapore (MAS) at the moment printed its ultimate tranche of responses to suggestions acquired on its proposed laws for Digital Fee Token (DPT) service suppliers in Singapore.
The consulted proposals element enterprise conduct and shopper entry measures to restrict potential shopper hurt. It additionally stipulates minimal know-how and cyber threat administration necessities for DPT service suppliers.
With regard to enterprise conduct, MAS will challenge steerage for DPT service suppliers to implement these measures, which acquired broad assist from a variety of respondents:
- Determine, mitigate and clearly disclose potential and precise conflicts of curiosity;
- Publish insurance policies, procedures and standards that govern the itemizing of a DPT; and
- Set up efficient insurance policies and procedures to deal with buyer complaints and resolve disputes.
Concerning shopper entry measures, DPT service suppliers ought to discourage cryptocurrency hypothesis by retail prospects by:
- Figuring out a buyer’s threat consciousness to entry DPT companies;
- Not providing any incentives to commerce in cryptocurrencies;
- Not offering financing, margin or leverage transactions;
- Not accepting domestically issued bank card funds; and
- Limiting the worth of cryptocurrencies in figuring out a buyer’s internet value.
Within the space of know-how and cyber threat, MAS would require DPT service suppliers to take care of excessive availability and recoverability of their vital methods, in keeping with present necessities imposed on monetary establishments.
MAS’ regulatory measures on DPT companies shall be carried out via laws and pointers, which can take impact in phases from mid-2024. This can present an satisfactory transitional interval for DPT service suppliers to correctly implement these measures.
Ms Ho Hern Shin, Deputy Managing Director (Monetary Supervision), MAS, mentioned:
“DPT service suppliers have the duty to safeguard the pursuits of shoppers who work together with their platforms and use their companies. Whereas these enterprise conduct and shopper entry measures will help meet this goal, they can’t insulate prospects from losses related to the inherently speculative and extremely dangerous nature of cryptocurrency buying and selling.
We urge shoppers to stay vigilant and train utmost warning when dealing in DPT companies, and to not cope with unregulated entities, together with these based mostly abroad.”