MAS seeks public feedback on proposed crypto consumer rules

The Monetary Authority of Singapore (MAS) is seeking feedback from the public on measures to limit consumer access and improve business conduct in a growing space that it considers inherently risky. Among the measures it has proposed are restricting of cryptocurrency trading via credit, implementing customer-knowledge assessments, and prohibiting crypto service providers from lending out customers’ digital-payment tokens. However, the regulator noted that the proposals “do not and cannot protect consumers from the many inherent risks of trading in cryptocurrencies”. The MAS is also seeking the public’s views on the steps service providers should take when a customer is assessed to have inadequate knowledge. The authority is also proposing that service providers be barred from dangling incentives, such as free trading credits or digital payment tokens, to entice customers.