The Monetary Authority of Singapore (MAS), the country's central bank and financial regulator, Announced strengthening regulations aimed at protecting individuals and limiting their ability to engage in cryptocurrency trading. The authority has finalized these measures following an extensive year-long public consultation and review process.
Starting in mid-2024, newly introduced rules will prohibit cryptocurrency platforms, also known as digital payment token (DPT) service providers, from accepting purchases made with locally issued credit cards. Additionally, incentives that encourage people to trade digital tokens, such as free trading credits or rewards, will be prohibited.
While the MAS aims to protect the interests of clients, it recognizes that these regulations cannot fully protect them from the inherent risks associated with highly volatile and speculative cryptocurrency trading. Ho Hern Shin, deputy director general of financial supervision at MAS, urges consumers to exercise caution and avoid dealing with unregulated entities, including those operating internationally.
She said:
"While these business conduct and consumer access measures can help achieve this goal, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading."
These new measures will apply to all retail clients, regardless of their place of residence, and will include non-accredited individuals or institutional investors. Accredited investors are defined as those who own more than $1 million in net financial assets.
MAS CEO Ravi Menon recently criticized cryptocurrencies for their failure as effective digital money, saying "They have performed poorly as a medium of exchange or store of value, their prices are subject to strong speculative swings, and many cryptocurrency investors have suffered significant losses."
Let us know what you liked about this article, what could be improved, or share any other comments by sending an email to by filling out this short form.
