With the global fervour from retail investors surrounding the trading of cryptocurrencies (many of which would be regulated under the Singapore Payment Services Act 2019 (“PS Act“) in Singapore as digital payment tokens (“DPTs“)), the Monetary Authority of Singapore (“MAS“) stance has been, and remains, that trading in DPTs carries very high risk and is unsuitable for the Singapore general public.
MAS noted that certain DPT service providers have been promoting DPT services online and through printed advertisements, as well as via automated teller machines that facilitate trading in DPTs, commonly known as “crypto ATMs”. In view thereof, MAS issued a set of “Guidelines on Provision of Digital Payment Token Services to the Public” outlining restrictions on DPT service providers concerning the promotion of DPT services to the Singapore public (“Guidelines“). The Guidelines also set out new expectations of MAS for DPT service providers licensed or regulated under the PS Act to restrict the provision of payment token derivatives services.
In this Update, we highlight the key takeaways from the Guidelines which participants in the DPT space should take note of.
For more information, click here to read the full Legal Update.
