This is an update on the Monetary Authority of Singapore’s (“MAS”) response to the consultation paperon Proposed Regulatory Measures for Digital Payment Token Services published on 3 July 2023 (“3July CP Response”). The 3 July CP Response is the first part of MAS’s response to public feedbackon 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 theresponse to the 26 Oct CP will cover the remaining regulatory measures, including those on consumeraccess safeguards. The proposed regulatory measures for digital payment token services, ifimplemented, would apply to licensed and exempt payment service providers that carry on a businessof 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 the3 July CP Response.
