MAS in Singapore bans retail leveraged trading, margin trading, and credit card payments for cryptocurrencies.

The Monetary Authority of Singapore (MAS) introduced a series of strict regulatory measures on the 23rd aimed at reducing potential consumer loss risks. This includes prohibiting crypto entities from offering leveraged and margin trading to retail users, banning cryptocurrency payments via credit cards, and allowing exchanges to develop their own token listing standards after disclosing conflicts of interest.

MAS Updates Cryptocurrency Regulations

The Monetary Authority of Singapore (MAS) has updated its regulatory measures for Digital Payment Token (DPT) service providers in Singapore, as the final part of its consultation process, as detailed in the regulations and consultation paper.

The regulations cover various aspects including business conduct, consumer protection, as well as technology and cybersecurity risk management.

Singapore Requires Crypto Platforms to Safeguard User Assets in Trust, Bans Lending and Margin Trading to Retail Investors

Firstly, the guidelines provide directions that DPT service providers must adhere to in their operations:

• Identify, mitigate, and clearly disclose potential conflicts of interest
• Establish and comply with listing standards and procedures for DPTs
• Set up effective and streamlined user complaint Standard Operating Procedures (SOP)
• Ensure high availability and recoverability of their trading systems

Additionally, the regulations also impose restrictions on consumer protection measures to prevent irrational cryptocurrency speculation by retail users, including:

• Evaluate and ascertain users' awareness of risks associated with DPT services
• Prohibition of offering any trading incentives for cryptocurrencies
• Ban on providing credit financing, leverage, and margin trading
• Prohibit the use of locally issued credit cards for cryptocurrency payments
• Exclude cryptocurrencies from the net asset calculation of retail investors

The regulations are set to be implemented in phases by mid-2024, allowing a sufficient transition period for all DPT service providers.

Former MAS Personnel: Singapore Regulations Relatively Lenient

Former MAS personnel Angela Ang stated in response:

MAS has always maintained a stance against speculative trading, but they have taken relatively lenient measures in certain areas, indicating MAS's willingness to listen to industry feedback.

She further noted that regulations in Hong Kong are stricter, only allowing tokens that meet regulatory standards to be listed on exchanges.

MAS Actively Establishing Cryptocurrency Regulatory Framework

In recent times, Singapore authorities have been focused on approving Major Payment Institution (MPI) licenses for various cryptocurrency companies offering Digital Payment Token (DPT) services. Over the past two months, entities such as the U.S. exchange Coinbase, South Korean exchange Upbit, and Taiwanese exchange XREX have received MAS's preliminary approval or licenses.

Entities awarded these licenses are able to conduct multiple payment services without restrictions on transaction amounts or liquid assets.

In August of this year, MAS also introduced the final version of its stablecoin regulatory framework.