Singapore reveals new crypto regulations
Cryptocurrency continues to face tighter regulations around the world, with Singapore the latest country to update its rules on how it can be used.
Singapore’s Gambling Regulatory Authority previously indicated its opposition towards crypto casinos, with elite resorts such as Marina Bay Sands and Resorts World Sentosa preferred.
After a long period of speculation over what Singapore would do in order to attempt to establish a firmer grip on the world of cryptocurrency, its latest moves have now been confirmed.
The Monetary Authority of Singapore (MAS) – which is effectively the central bank in Singapore – revealed measures that have been compared to the way curbs on smoking have been gradually brought in. New measures that have been designed to manage digital payment tokens (DPTs) and avoid cryptocurrency speculation in Singapore were put forward.
“DPT service providers have the obligation to safeguard the interests of consumers who interact with their platforms and use their services,” said MAS deputy managing director Ho Hern Shin.
It will no longer be permitted to use a credit card to buy DPTs. This could have a major impact on crypto casino players who are used to making payments into their accounts in this manner.
“While MAS recognizes that credit card payments are seen as a convenient means of payment, MAS is of the view that credit card and charge card usage would allow retail customers easy access to debt financing, running counter to MAS’s policy intent to restrict purchases of cryptocurrencies on credit,” MAS said in guidance that was revealed a few days ago.
Crypto casino players who are deemed to be “accredited investors” will be exempt from the rules. However, they will need to have a minimum of $1.49 million (SG$2 million) in net personal assets in order to qualify for this special status. Crypto assets only make up to $149,000 (SG$200,000) of their portfolio if they want to be considered as an accredited investor.
DPT service providers have also been informed that they will no longer be allowed to offer any incentives to trade in cryptocurrencies in Singapore, while they also cannot offer financing, margin or leveraged transactions either as a result of the new rules from the MAS.
“While these business conduct and consumer access measures can help meet this objective, they cannot insulate customers from losses associated with the inherently speculative and highly risky nature of cryptocurrency trading,” added MAS deputy managing director Ho Hern Shin.