MAS Additional Strengthens Guidelines for Crypto Service Suppliers in Singapore, Whereas Additionally Creating Room

The Financial Authority of Singapore (MAS) has launched the second, closing tranche of its responses to suggestions on a session paper of proposed laws for crypto service suppliers.

The central financial institution stored the requirement for crypto entities to discourage cryptocurrency speculation by retail prospects by not providing financing, margin transactions or any incentives to commerce, it mentioned Thursday. The MAS additionally needs crypto entities to not settle for domestically issued bank card funds and to find out a buyer’s danger consciousness earlier than permitting entry to the providers.

“MAS has been very constant about its stance in opposition to speculative retail buying and selling, so it’s unsurprising that they’re largely shifting forward with their proposals,” mentioned Angela Ang, a senior coverage adviser for blockchain intelligence agency TRM Labs and a former MAS regulator. “That mentioned, they’ve landed on barely much less restrictive measures in areas such because the inclusion of cryptocurrencies in figuring out prospects’ internet value. This exhibits that MAS is listening, and is prepared to think about business suggestions, even when they don’t all the time agree.”

Among the many much less restrictive measures, MAS has eased the boundaries on qualifying as an accredited investor, clarifying that some crypto belongings will be counted towards the S$2 million ($1.5 million) wanted.

It additionally seems to have allowed exchanges to give you their very own standards for itemizing tokens so long as they disclose conflicts of curiosity, publish standards that govern the itemizing and set up procedures to resolve buyer disputes. Hong Kong’s method is extra prescriptive, Ang mentioned, permitting solely tokens that satisfy the regulator’s criteria.

The MAS additionally has excessive availability and risk-incidents reporting stipulations. These are according to present necessities imposed on different systemically essential monetary establishments, however not fee service suppliers, making this a particular provision for crypto.

The foundations will take impact in phases from mid-2024 to supply an “enough transitional interval” for his or her implementation.

The foundations are aimed toward limiting potential client hurt, MAS mentioned.

“Whereas these enterprise conduct and client entry measures can assist meet this goal, they can not insulate prospects from losses related to the inherently speculative and extremely dangerous nature of cryptocurrency buying and selling,” mentioned Ho Hern Shin, deputy managing director for monetary supervision.