This is an update on the Monetary Authority of Singapore’s (“MAS”) response to the consultation paper on Proposed Regulatory Measures for Digital Payment Token Services published on 3 July 2023 (“3 July CP Response”). The 3 July CP Response is the first part of MAS’s response to public feedback on the consultation paper that was issued on 26 October 2022 (“26 Oct CP”).
The 3 July CP Response focuses on measures relating to segregation and custody of customers’ assets, risk management controls as well as lending and staking of customers’ assets. Part 2 of the response to the 26 Oct CP will cover the remaining regulatory measures, including those on consumer access safeguards. The proposed regulatory measures for digital payment token services, if implemented, would apply to licensed and exempt payment service providers that carry on a business of providing a digital payment token (“DPT”) service under the Payment Services Act 2019 (“PSA”) (collectively known as “DPTSPs”).
CHP Law had provided its feedback to the 26 Oct CP and we are pleased to set forth a summary of the 3 July CP Response.
