Singapore MAS Finalizes DPT Regulations to Protect Consumers and Enhance Resilience
The post Singapore MAS Finalizes DPT Regulations to Protect Consumers and Enhance Resilience appeared first on Coinpedia Fintech News
Singapore’s Monetary Authority (MAS) has published its final tranche of proposals for regulating Digital Payment Token (DPT) service providers in the country. The measures aim to mitigate potential consumer harm and ensure minimum technology and cyber risk management requirements for DPT service providers.
Business Conduct measures
MAS will also require DPT service providers to discourage cryptocurrency speculation by retail customers by implementing measures such as:
Conflicts of Interest: DPT service providers will be required to identify, mitigate, and clearly disclose potential and actual conflicts of interest. This includes conflicts arising from their own trading activities, financial interests in listed DPTs, and relationships with third parties.
Listing Criteria: DPT service providers will be required to publish policies, procedures, and criteria that govern the listing of a DPT. This will provide transparency to customers and prevent the listing of DPTs that may pose risks to consumers.
Customer Complaints: DPT service providers will be required to establish effective policies and procedures to handle customer complaints and resolve disputes. This includes providing timely responses to complaints, providing clear explanations of decisions, and ensuring that complaints are handled fairly and consistently.
Consumer Access Measures
Risk Awareness: DPT service providers will be required to determine a customer’s risk awareness before allowing them to access DPT services. This will involve assessing the customer’s understanding of the risks associated with DPT trading and their investment objectives.
No Incentives: DPT service providers will be prohibited from offering any incentives to trade in cryptocurrencies. This includes promotions, bonuses, or other rewards that may encourage retail customers to engage in speculative trading.
No Financing, Margin, or Leverage Transactions: DPT service providers will be prohibited from offering financing, margin, or leverage transactions to retail customers. This will prevent retail customers from taking on excessive leverage and mitigate the risk of losses.
Filed under: Bitcoin - @ November 23, 2023 10:14 am