Singapore Tightens Grip on Cryptocurrency: New Regulations Unveiled

Currently, gambling is tightly regulated in Singapore, with online gambling strictly prohibited. Residents and visitors can engage in lottery, retail gambling, or horse wagering. However, Singapore residents face additional fees when visiting casinos, a governmental effort to discourage such activities. In contrast, tourists are exempt from extra charges when participating in casino gambling.

Singapore's stringent views on cryptocurrency were underscored last year with a ban on advertising popular digital currencies. Now, the Monetary Authority of Singapore (MAS) announces new measures to further regulate the sector.

The MAS proposes comprehensive regulations for Digital Payment Token (DPT) service providers. These regulations aim to protect the public by implementing stringent measures, requiring providers to assess customers to prevent potential harm. Additionally, providers must meet technology and cyber risk management requirements.

MAS outlines a phased approach for the implementation of the new regulations, starting from mid-2024. Alongside regulatory measures, the Authority will issue guidelines to assist DPT service providers in compliance.

Ms. Ho Hern Shin, MAS’ deputy managing director, emphasizes the obligation of cryptocurrency providers to protect customers and monitor activities. New rules prohibit the use of credit cards for cryptocurrency purchases and incentives for trading. The regulations also seek to limit the value of cryptocurrency purchases based on customers' net worth.

These new rules parallel existing stringent regulations in Singapore, reminiscent of those in place for gambling and tobacco products. The advertising of tobacco products has been banned in the country for more than three decades.