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Spore crypto coin12/13/2023 DPTSPs should not enter into any leveraged DPT transaction with a retail customer, or facilitate a retail customer’s entering into any leveraged DPT transaction with any other person.DPTSPs should not provide a retail customer with a credit facility to facilitate the retail customer’s purchase or continued holding of DPTs.an existing customer or a celebrity) for referring a DPT service to retail customers Digital Payment Token service providers (“ DPTSPs”) should not offer incentives to (1) any retail customers for participating in a Digital Payment Token (“ DPT”) service, and (2) any person (e.g.Examples of such proposed measures include: On 26 October 2022, about two weeks prior to FTX’s filing for bankruptcy on 11 November 2022, the MAS released two consultation papers setting out proposed measures to reduce the risk of consumer harm in cryptocurrency trading (“ Consultation Paper on Proposed Regulatory Measures for Digital Payment Token Services”) and to support the development of stablecoins in Singapore’s digital asset ecosystem (“ Consultation paper on Proposed Regulatory Approach for Stablecoin-Related Activities”). In January 2022, the MAS introduced measures to restrict the marketing and advertising of cryptocurrency services in public areas and disallow cryptocurrency trading being portrayed in a manner that trivialises its risks. In particular, the MAS warned that the surge in cryptocurrency prices was likely driven by speculation and as such there was a high risk of a sharp reduction in prices, and that there were no regulatory safeguards for investments in cryptocurrencies.įast forward half a decade later to 2022 - a year marked by the collapse of the algorithmic stablecoin TerraUSD, and the downfall of major players such as crypto lenders Voyager Digital, Celsius Network, and BlockFi, crypto hedge fund Three Arrows Capital, and more recently, FTX. In December 2017, coinciding with the meteoric rise in the value of Bitcoin (which peaked at almost US$20,000 in December 2017 from a mere US$1,000 in January 2017), and in light of the ensuing elevated interest in cryptocurrency investments, the MAS further emphasised that the public should act with “ extreme caution” and understand the significant risks accompanying such investments. In an interview with Bloomberg in October 2017, the Managing Director of the MAS, Ravi Menon, had stated that “ s of now, I see no basis for wanting to regulate cryptocurrencies.” However, at that time, whilst the MAS regulated virtual currency intermediaries in Singapore specifically to address potential money laundering and terrorist financing risks, it stated that it would otherwise not regulate virtual currencies per se. In a Consumer Advisory issued in conjunction with the Commercial Affairs Department on 10 August 2017, the MAS also advised consumers to exercise due diligence to understand the potential risks associated with ICOs and investment schemes involving digital tokens. Since June 2013, the Monetary Authority of Singapore (“MAS”) has been cautioning consumers and businesses of the significant risks associated with virtual currency transactions. Following the boom in initial coin offerings (“ ICO”) in 2016, the MAS clarified in August 2017 that ICOs must comply with existing securities laws aimed at safeguarding investors’ interest if a token is structured in the form of securities.
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