MAS Imposes Restrictions on Crypto Service Providers, Prohibiting Lending and Staking Activities for Retail Customers

The Monetary Authority of Singapore (MAS) has announced stringent measures that restrict crypto service providers from facilitating lending and staking activities involving tokens for retail customers.

These measures were introduced following a thorough public consultation conducted in October 2022, which received significant interest and feedback from a wide range of stakeholders. While there were diverse views on this proposal, MAS has decided to proceed with the restriction.

Under the new regulations, crypto service providers will no longer be allowed to offer lending and staking activities for retail customers. However, they will still have the option to facilitate these activities for institutional and accredited investors.

The MAS, however, indicated that its position on banning crypto entities from facilitating lending and staking of tokens for retail customers could change in the future.

“Some respondents suggested to allow DPT service providers to offer these activities with the retail customer’s consent and risk disclosures, while others advocated a ban on these high-risk and speculative activities” the MAS said. “MAS will monitor market developments and consumer risk awareness as these evolve, and will take steps to ensure that our measures remain balanced and appropriate.”

RISK DISCLOSURE: ⚠️

Digital payment token investments, such as cryptocurrencies, are not guaranteed by service providers or cryptocurrency exchanges and the government. It is crucial to exercise caution in investing, including the awareness that a part or all of the capital may be lost and may not be recovered, especially in cases of high price volatility or down market, bankruptcy, seizures and other factors. Hence, the user’s risk tolerance, investment appetite or capacity for loss should be set firstly, and they should observe safe and knowledgeable investment practices accordingly. For more information, please visit MAS' website.

IMPORTANT NOTE: 📢

Coinut.com is a financial entity regulated as a Money Services Business in Canada and an exempt entity under the Payment Services Act in Singapore. Please be reminded that cryptocurrency trading is highly risky and is not suitable for the general public. For more information, please refer to Risk Warnings and Risk Statements.