Singapore: Implemented MAS guidelines on consumer protection measures by digital payment token service providers including safeguarding of customer assets

On 4 October 2024, the guidelines on consumer protection measures by digital payment token service providers adopted by the Monetary Authority of Singapore (MAS) entered into force. The guidelines apply to all digital payment token (DPT) service providers in Singapore and establish consumer protection standards covering asset custody, consumer access, and conflict of interest management. The guidelines require DPT providers to establish trust accounts, directly or with an external safeguarding person, ensuring customer assets are kept separate from the provider's own. The guidelines also emphasise that providers should review safeguarding arrangements regularly and use separate blockchain addresses for customer assets. The guidelines focus on risk management measures including limiting individual control over asset movement and using cold wallets for 90% of assets. It also requires providers to clearly disclose their storage and loss-handling policies, with extra safeguards for retail customers, such as prohibiting actions like lending or staking their assets without consent.