Singapore’s central bank, the Monetary Authority of Singapore (MAS), has announced stricter rules for cryptocurrency companies. The new regulations aim to protect retail investors from potential losses and will be implemented in mid-2024.
The measures include prohibiting crypto service providers from accepting payments made with local credit cards. This is to prevent easy access to credit and discourage debt-financed crypto trading. Additionally, companies will be banned from offering trade incentives to retail customers.
MAS also wants to ensure that retail investors have a proper understanding of the risks involved in cryptocurrency investments. As part of the new rules, companies will need to assess customer risk awareness and limit the amount of crypto holdings taken into account when calculating net worth for investment purposes.
The deputy managing director of MAS, Ho Hern Shin, emphasized the speculative nature of cryptocurrencies and urged consumers to be cautious. The goal of these regulations is to provide safeguards for retail investors who engage in transactions involving digital payment tokens.
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