MAS issues revised guidelines on provision of consumer protection safeguards by digital payment token service providers

29 October 2024

On 19 September 2024, the Monetary Authority of Singapore (“MAS”) published a revised version of the Guidelines on the Provision of Consumer Protection Safeguards by Digital Payment Token Service Providers (PS-G03) (“Guidelines”).

The Guidelines aim to promote the adoption of sound and robust practices for digital payment token (“DPT”) service providers, setting out MAS’ expectations on the measures that a DPT service provider should have in place to address consumer protection risks.

The Guidelines have been revised to incorporate measures outlined in the second part of MAS’ response, published on 23 November 2023, to feedback on its consultation paper on proposed regulatory measures for DPT services.

Consumer access measures

The new Chapter 4 provides guidance on consumer access measures that a DPT service provider should implement in relation to its dealings with all retail customers. It sets out measures relating to the conduct of risk awareness assessments, restrictions on the offering of incentives, and restrictions on credit and leverage.

Conflicts of interest

The provisions on conflicts of interest have been expanded and moved to a new Chapter 5 in the revised Guidelines, which provides guidance on how a DPT service provider should identify and mitigate conflicts of interest, as well as the specific mitigating measures based on the DPT services or DPT trading activities it conducts. Chapter 5 includes additional measures relating to the identification and mitigation of conflicts of interest and new measures relating to the vertical integration of DPT trading activities.

Other business conduct measures

The new Chapter 6 provides further guidance on how a DPT service provider should conduct its business in other key areas of concern, covering DPT listing and governance policies and complaints handling and dispute resolution.

Transitional provisions for accredited investor opt-in regime

The Guidelines have been revised to include transitional provisions for the accredited investor opt-in regime following the addition of Chapters 4 and 6 of the Guidelines. These provisions are set out in paragraph 2.3 of the Guidelines.

Effective date

Paragraph 2.3 and Chapters 4, 5 (other than paragraph 5.3), and 6 take effect on 19 June 2025. Paragraph 5.3, which covers matters relating to the safeguarding personnel for customers’ assets, took effect on 4 October 2024.

Reference materials

The Guidelines are available on the MAS website www.mas.gov.sg.