MAS has published new requirements for DPT service providers and a consultation paper on additional regulations and prohibitions against unfair trading practices.
On 3 July 2023, the Monetary Authority of Singapore (MAS), Singapore’s primary regulator for banks and payment services, announced new custody and segregation requirements for digital payment token (DPT) service providers, including new obligations to safekeep customer assets under a statutory trust.
Additionally, the MAS published a consultation paper (the Consultation Paper) seeking the public’s views on its proposed regulatory measures for DPT service providers and prohibitions against unfair trading practices. The Consultation Paper follows the MAS’ previous consultation paper on proposed regulatory measures for DPT services in December 2022.
The MAS’ proposals largely align with the Hong Kong Securities and Futures Commission’s (SFC) new framework for regulating virtual asset trading platforms (VATP) (see Latham’s blog post), and indicate that virtual asset service providers must comply with regulatory rules similar to the securities regime. This aligned concept aims to ensure investor protection in line with regulators’ “same risk, same regulation” approach.