![]() ![]() Other retail-facing measures include restrictions on offering any incentives to retail investors to participate in a DPT service or for referrals of a DPT service to retail investors and prohibitions on credit facilities or leverage and on accepting payments by credit card or charge card in relation to a DPT service. The MAS is supportive of the industry developing a uniform template form for assessing a retail customer’s knowledge of the risks of trading in DPTs. For retail investors who do not pass the assessment, the MAS proposes that DPTSPs would take additional measures to improve their knowledge of these risks, such as providing educational materials, cool-off periods between assessments and a diverse question bank for assessments. The assessment would focus on investor knowledge of the risk of losing their DPTs due to factors like market fluctuation and fraud. However, MAS-regulated single-currency pegged stablecoins (as further discussed below) may be permitted to count towards the AI determination without any cap.Īs a key retail protection measure, a risk awareness assessment for retail investors has been proposed before any DPT services can be offered. Options being considered include capping the value of DPT holdings that can be counted towards the AI net-asset threshold, for example, applying a cap of S$200,000 for individuals (which would be 10 per cent of the S$2 million net-asset threshold which an individual must meet to qualify as an AI) or fully excluding the value of DPT holdings from the value of net personal assets. In this context, the MAS is reviewing the criteria for determining whether a customer should qualify as an AI where the customer’s net assets include DPT holdings, given the volatile nature of DPTs. The retail category captures any investor who is neither an accredited investor (AI) nor an institutional investor as defined in the Securities and Futures Act 2001. The MAS is considering whether these measures should be applied to investors outside Singapore as well (noting that DPTSPs should, in any event, comply with consumer access measures and other requirements of foreign jurisdictions in which they operate). The MAS proposes to introduce new access measures targeting retail investors who are resident, formed or incorporated in Singapore. ![]() ![]() As a subsequent step, the MAS proposes to separately publish proposed subsidiary legislation for consultation. ![]() However, the consultation paper also sets out business conduct measures that will apply to DPTSPs irrespective of the classification of their customers.įollowing consultation on these measures, in the first instance, the MAS intends to publish new guidelines that DPTSPs will be required to implement within six to nine months from publication. The proposals follow the introduction, earlier in 2022, of guidelines that restrict DPTSPs from promoting cryptocurrency services in public spaces. The “targeted regulatory measures” in the first consultation paper focus to a large degree on retail access to digital payment tokens (DPTs) due to concerns about “cryptocurrency speculation” and in response to high-profile collapses of several DPTSPs in 2022. ![]()
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