SINGAPORE – Most major markets in the global digital asset sector, including Singapore, are moving to tighten regulations, with around half of them focused on consumer protection, a report has found.
Blockchain analysis firm TRM Labs said in a report released on January 8 that it examined the development of crypto policies in 2023 across 21 jurisdictions that account for approximately 70% of global crypto exposure.
In 2023, 80 percent of 21 jurisdictions moved to tighten cryptocurrency regulations, and almost half of them strengthened consumer protection measures.
Singapore is one of eight jurisdictions with a licensing regime for crypto businesses. Other countries include Hong Kong, Thailand, and Germany.
Countries relying on registration systems include Canada, the European Union, and Japan.
Brazil and Argentina are listed as places where crypto regulations are not yet in place.
The report stated that 2024 will be the year of further progress in the development and implementation of crypto asset policies at both international and national levels.
On the domestic front, Singapore regulators have finalized policies to protect consumers and finalized a stablecoin framework, the report said.
New consumer protection rules, finalized in November 2023 after a year of consultations, will allow Singapore-licensed crypto service providers to offer incentives to retail customers and accept local credit card payments. It is not permitted to do so.
Stablecoins are tokens that are typically pegged 1:1 to a currency or commodity, such as the US dollar.
In 2024, implementing a regulatory framework is likely to be a key theme in Singapore.
The Monetary Authority of Singapore (MAS) will begin implementing consumer protection measures in early to mid-2024, with a nine-month transition period, the report said.
MAS is also looking to expand the scope of both. License and supervision will be granted to Singapore-based digital token payment service providers by the end of 2024 from the perspective of anti-money laundering and countering the financing of terrorism.
Citing the global money laundering and terrorist financing watchdog, the report said: “This enhancement will help align Singapore with the latest Financial Action Task Force (FATF) standards ahead of Singapore's FATF Mutual Assessment in 2025. We aim to achieve this.”
Furthermore, while most areas of crypto regulation are clear, there is a lack of clarity regarding decentralized finance (DeFi), particularly where responsibility and accountability lies and how regulators can realistically exercise oversight and authority. He added that this is a topic that has not yet been addressed.
