Singapore: Minister of State for Trade and Industry issued response in parliamentary inquiry on regulations for digital payment token service providers

On 5 March 2025, the Minister of State for Trade and Industry issued a response to a parliamentary inquiry on regulations for digital payment token service providers. They clarified their position on tightening rules for digital payment token service providers, including the prohibition of payments through locally issued credit cards. It was also emphasised that cryptocurrencies are highly volatile and speculative, making them unsuitable for the general public. The use of credit cards for cryptocurrency purchases exposes individuals to high-interest debt, which can compound losses if the value of the cryptocurrency falls. To mitigate these risks, the Monetary Authority of Singapore has restricted digital payment token service providers from offering credit or leverage to retail customers. While these regulations aim to protect consumers, MAS reiterated that they cannot eliminate the inherent risks of cryptocurrency investments and urged consumers to exercise caution.