Education
Singapore’s MAS Takes Aim at Crypto Speculation
The Monetary Authority of Singapore (MAS) wants to
discourage cryptocurrency speculation among retail customers, according to
new regulations for Digital Payment Token (DPT) service providers
in Singapore. These measures aim to address potential harm to consumers and to ensure
the safety of individuals engaging in cryptocurrency trading.
Ho Hern Shin, the Deputy Managing Director
(Financial Supervision) at the MAS, said: “DPT service providers must
safeguard the interests of consumers who interact with their platforms and use
their services.”
“We urge consumers to remain vigilant and exercise
utmost caution when dealing in DPT services and not to deal with unregulated
entities, including those based overseas.”
The MAS has set comprehensive guidelines covering
business conduct, consumer access, and technology-related aspects for DPT service providers. These measures include identifying and disclosing conflicts
of interest, establishing complaint resolution procedures, and enforcing stringent technology and cyber risk
management standards.
These regulations are set to be implemented in phases
starting mid-2024, providing a transitional period for service providers to
comply with them.
The MAS has emphasized the need for DPT service
providers to prioritize consumer interests by implementing measures to mitigate
potential risks associated with cryptocurrency trading. These measures
encompass multiple facets, ensuring that the service providers operate in a manner that
safeguards consumers.
MAS today published business conduct and consumer access measures for Digital Payment Token services in Singapore to limit potential consumer harm. They will be implemented through regulations and guidelines, which will take effect in phases from mid-2024. https://t.co/laevvAlW0a pic.twitter.com/kxBLRQG0az
— MAS (@MAS_sg) November 23, 2023
Additionally, the MAS has mandated high technology and cyber risk
management standards for DPT service providers, aligning with existing
requirements for financial institutions. It emphasized the importance of
maintaining the availability and recoverability of critical systems.
The regulator has introduced a statutory trust
requirement for DPT service providers, mandating the safekeeping of customer
assets separate from their own. Daily reconciliation and proper record-keeping
are required, alongside disclosure of risks to customers.
Singapore Strengthens Oversight
In July, the MAS announced an expansion of ‘Project Guardian’ to assess asset tokenization
Tokenization
Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen
Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen
Read this Term and Decentralized Finance. This
included establishing an industry group involving multiple financial
institutions to conduct pilot studies to mitigate risks associated with digital
assets.
Meanwhile, the MAS recently initiated a live pilot
program to issue a wholesale Central Bank Digital Currency (CBDC) in Singapore
dollars. This pilot marked a shift from previous simulations to live
implementation to explore the feasibility and efficiency of the usage of CBDCs for
instant settlements across commercial banks.
The pilot involved issuing tokenized liabilities by
participating banks, enabling retail customers to conduct transactions seamlessly.
This process streamlines clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term and settlement, presenting a departure from
the current multi-step system.
The Monetary Authority of Singapore (MAS) wants to
discourage cryptocurrency speculation among retail customers, according to
new regulations for Digital Payment Token (DPT) service providers
in Singapore. These measures aim to address potential harm to consumers and to ensure
the safety of individuals engaging in cryptocurrency trading.
Ho Hern Shin, the Deputy Managing Director
(Financial Supervision) at the MAS, said: “DPT service providers must
safeguard the interests of consumers who interact with their platforms and use
their services.”
“We urge consumers to remain vigilant and exercise
utmost caution when dealing in DPT services and not to deal with unregulated
entities, including those based overseas.”
The MAS has set comprehensive guidelines covering
business conduct, consumer access, and technology-related aspects for DPT service providers. These measures include identifying and disclosing conflicts
of interest, establishing complaint resolution procedures, and enforcing stringent technology and cyber risk
management standards.
These regulations are set to be implemented in phases
starting mid-2024, providing a transitional period for service providers to
comply with them.
The MAS has emphasized the need for DPT service
providers to prioritize consumer interests by implementing measures to mitigate
potential risks associated with cryptocurrency trading. These measures
encompass multiple facets, ensuring that the service providers operate in a manner that
safeguards consumers.
MAS today published business conduct and consumer access measures for Digital Payment Token services in Singapore to limit potential consumer harm. They will be implemented through regulations and guidelines, which will take effect in phases from mid-2024. https://t.co/laevvAlW0a pic.twitter.com/kxBLRQG0az
— MAS (@MAS_sg) November 23, 2023
Additionally, the MAS has mandated high technology and cyber risk
management standards for DPT service providers, aligning with existing
requirements for financial institutions. It emphasized the importance of
maintaining the availability and recoverability of critical systems.
The regulator has introduced a statutory trust
requirement for DPT service providers, mandating the safekeeping of customer
assets separate from their own. Daily reconciliation and proper record-keeping
are required, alongside disclosure of risks to customers.
Singapore Strengthens Oversight
In July, the MAS announced an expansion of ‘Project Guardian’ to assess asset tokenization
Tokenization
Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen
Tokenization represents the process of substituting a sensitive data element with a non-sensitive equivalent, i.e. token, which bears no extrinsic or exploitable meaning or value. In essence, the rights to the ownership of an asset are converted into a digital token. Tokenization can be used to own an entire unit of an asset. For example, one token that represents the ownership of a piece of real estate or to split ownership of a single unity of an asset such as 200,000 tokens, each one represen
Read this Term and Decentralized Finance. This
included establishing an industry group involving multiple financial
institutions to conduct pilot studies to mitigate risks associated with digital
assets.
Meanwhile, the MAS recently initiated a live pilot
program to issue a wholesale Central Bank Digital Currency (CBDC) in Singapore
dollars. This pilot marked a shift from previous simulations to live
implementation to explore the feasibility and efficiency of the usage of CBDCs for
instant settlements across commercial banks.
The pilot involved issuing tokenized liabilities by
participating banks, enabling retail customers to conduct transactions seamlessly.
This process streamlines clearing
Clearing
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th
Read this Term and settlement, presenting a departure from
the current multi-step system.
#Singapores #MAS #Takes #Aim #Crypto #Speculation
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