Singapore is planning to introduce stricter regulations for cryptocurrency service providers in order to protect retail customers from the higher financial risks associated with digital assets.
Some of the proposed measures
Requiring crypto service providers to disclose the fees and charges for their services, as well as the risks and volatility of the crypto assets they offer.
Preventing crypto service providers from accepting payments through locally issued credit cards.
Enhancing the standards and governance of stablecoin-related activities, such as requiring stablecoin issuers to have a presence in Singapore and to comply with anti-money laundering and counter-terrorism financing rules.
Imposing a cap on the amount of crypto assets that retail customers can buy or sell in a single transaction, as well as a limit on the total value of crypto assets they can hold across all service providers.
MAS
The Monetary Authority of Singapore (MAS) stated that these measures are intended to reduce the potential for consumer harm and financial instability arising from crypto trading, while supporting the development of stablecoins as a credible medium of exchange in the digital asset ecosystem.
The MAS also noted that crypto assets are not legal tender and are not backed by any asset or issuer, and therefore carry significant risks of loss, fraud, hacking, and theft. The MAS urged consumers to exercise due diligence and understand the potential risks before engaging in crypto transactions.