Singapore Unveils Plans for Stringent Crypto Regulations

Currently, gambling is strictly regulated in Singapore. With online gambling prohibited, residents and visitors can participate in lottery, retail gambling or wagering on horses. However, Singapore residents are subject to additional fees when visiting casinos, an effort by the government to deter them from such activities. In contrast, tourists in Singapore do not need to pay extra fees when engaging in casino gambling.

The country’s views in terms of regulating cryptocurrencies are also strict. Last year, Singapore imposed changes related to the popular digital currencies, completely prohibiting advertising. Now, the country’s crackdown against crypto continues with new measures announced by the Monetary Authority of Singapore (MAS), the central bank in the country.

The proposed regulations for Digital Payment Token (DPT) service providers in the country seek to protect the public with the implementation of stringent measures. The new regulations require DPT service providers to conduct assessments for its customers in an effort to prevent potential harm. Moreover, such providers would be required to meet technology and cyber risk management requirements.

The strict regulations, MAS said, will be implemented in phases starting from mid-2024. Besides regulatory measures, the Authority confirmed it will issue guidelines and other information necessary for DPT service providers. The phased approach, according to the MAS, will help providers of cryptocurrency services to ensure their compliance with the new regulations.

New Rules Prohibit Use of Credit Cards, Promotion of Crypto Trading

Ms Ho Hern Shin, MAS’ deputy managing director, revealed that cryptocurrency providers are obligated to protect their customers and monitor their activities. “While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading,” she explained.

Shin encouraged customers to be cautious, especially when dealing with DPT service providers in Singapore. Finally, she urged consumers to steer clear of unregulated DPT operators, especially such that are overseas.

“DPT service providers have the obligation to safeguard the interests of consumers who interact with their platforms and use their services.“

Ho Hern Shin, deputy managing director at MAS

The new rules seek to deter cryptocurrency speculation by requiring DPT service providers to determine their customer’s risk awareness. Moreover, providers would be prohibited from providing incentives for trading cryptocurrencies.

Further rules restrict the use of credit cards for cryptocurrency purchases. Finally, the new MAS regulatory measures seek to limit the value of cryptocurrency customers can purchase depending on their net worth.

The new stringent rules echo the ones already in effect for gambling, as well as tobacco products in the country. Advertising of tobacco products was banned in Singapore more than three decades ago.