MAS Introduces New Consumer Protection Guidelines for DPT Service Providers
Singapore is set to implement tougher regulations for entities involved in cryptocurrency or digital payment token (DPT) services.
The Monetary Authority of Singapore (MAS) announced on Tuesday its plans to broaden the range of payment services subject to regulation through modifications to the Payment Services Act and its supporting legislation.
These regulatory changes are scheduled to be introduced in phases starting from April 4, as per the MAS announcement.
The authority highlighted that the updated regulations would encompass custodial services for DPTs, the facilitation of DPT transmissions, and the facilitation of international money transfers across countries, even in cases where the funds are not directly handled within Singapore.
With these amendments, the MAS aims to enforce stricter anti-money laundering and counter-terrorism financing measures, enhance user protection, and ensure financial stability for DPT service providers.
Furthermore, the MAS mentioned that it would offer “transitional arrangements” for operators falling under the widened regulatory framework.
These entities are required to notify the MAS within 30 days and submit a license application within six months following the April 4 start date.
In recently published guidelines, the Monetary Authority of Singapore (MAS) has detailed consumer protection standards that digital payment token (DPT) service providers must adhere to according to the Payment Services Act.
These protocols, aimed at safeguarding consumers, mandate the separation of customer assets, the maintenance of accurate books and records, and the protection of the integrity and security of customer assets.
These guidelines are slated to be implemented starting October 4.
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