Timely, comprehensive, professional and accurate information and data to understand the latest information about blockchain, cryptocurrency and Bitcoin

FameEX Hot Topics | Monetary Authority of Singapore to Share Feedback from Digital Currency and Stablecoin Consultation in Q2

2023-03-24 11:13:45

The Monetary Authority of Singapore (MAS) has received a considerable amount of feedback regarding its proposed regulations for digital currency and stablecoins. Chairman Shanmugaratnam has stated that the MAS is currently reviewing this feedback and plans to release its response to the consultation by mid-2023. The proposals have garnered diverse reactions from industry CEOs of virtual asset service providers and academics, which has led lawmakers to question Shanmugaratnam on when more information will be disclosed.

One of the proposals in the MAS paper includes a complete ban on the offer of leverage and credit by virtual currency service providers to retail traders. The proposal also incorporates internal mechanisms to ensure the separation of clients' funds from the firm's proprietary funds. Under the proposed regulations, firms would be required to maintain high availability and recoverability of their critical systems while minimizing conflicts of interest.MAS has acknowledged that regulations alone cannot protect consumers from losses incurred from the highly risky and speculative nature of DPT trading. Therefore, consumers must exercise caution and take responsibility for their trading. The proposed regulations aim to safeguard consumers' interests by ensuring that digital payment tokens (DPTs) service providers maintain high levels of security and transparency. The regulations also aim to reduce the risk of financial crimes, including money laundering and terrorist financing, associated with DPT trading.

Singapore's proposed regulations aim to balance innovation with risk management, promoting responsible use of digital currencies and stablecoins while maintaining the country's reputation as a leading financial hub. As digital currencies and stablecoins gain mainstream acceptance and adoption, regulators worldwide are introducing regulations to ensure the market operates in a safe and secure manner. Singapore's proposed regulations aim to align the country's regulatory framework with industry best practices, ensuring that investors are protected from risks associated with DPT trading.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

Other articles
Copyright © 2022-2023 FAMEEX.COM All Rights Reserved
FameEX APPMobile trading, anytime, anywhere