This development follows from the earlier “Consultation Paper on Proposed Regulatory Measures for Digital Payment Token Services” issued by MAS in October 2022 which sets out proposals on regulatory measures which aim to reduce the risk of consumer harm in trading in DPTs.
The Investor Protection Consultation seeks comments on the legislative amendments to implement the requirements on segregation, custody and safeguard of assets and money of customers of DPT service providers. The Market Integrity Consultation focuses on the proposed regulatory measures a DPT service provider should establish to ensure market integrity and measures to prevent market abuse in the DPT market.
The consultation period ends on 3 August 2023. The requirements on segregation and custody of customers’ assets and money which are set out in the Investor Protection Consultation are targeted to take effect by October 2023. MAS stated that although it is consulting on the draft legislative changes to implement these requirements, as MAS has already finalised and published its policy positions on the segregation and custody requirements, DPT service providers should prepare to comply with these policy positions by October 2023.
For more information about these new requirements and the key proposals in the Market Integrity Consultation, please refer to our Update.
For more information, click here to read the full Legal Update.
