Singapore MAS Sets Robust Crypto Framework
The Monetary Authority of Singapore (MAS) has introduced a new regulatory framework to improve the governance and operational standards of digital payment token service providers (DPTSPs). The framework aims to protect retail investors by requiring them to complete a risk awareness assessment before engaging in cryptocurrency investments. The MAS also prohibits DPTSPs from offering incentives to attract retail investors, a proactive approach to protect public interests against high-risk financial activities.
Additionally, the MAS rules that DPTSPs cannot offer debt-financed or leveraged transactions to retail traders, reducing risks associated with high-risk trading strategies. The new framework also emphasizes the importance of operational integrity among crypto firms, requiring companies to distinguish between market-making and brokerage services to prevent conflicts of interest and ensure transparent operations.
(With inputs from Shikha Singh)
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