Regulatory Alerts2024-09-19
Added · Updated
Guidelines on Consumer Protection Measures by Digital Payment Token Service Providers
Digital payment token service providers must implement risk management systems to safeguard customer assets, including storing at least 90% of deposited assets in cold wallets disconnected from the internet. The guidelines establish an opt-in regime for accredited investor status, requiring providers to apply a minimum 50% haircut and a S$200,000 cap when valuing digital payment token holdings for net personal asset calculations. Providers are also required to segregate customer assets from their own, maintain trust accounts with suitable safeguarding persons, and disclose specific terms and risks to retail customers.