Alvin Tan, a Singaporean Minister of Trade and Industry and Industry and Youth, community and youth, has called for stronger investors’ protection measures and clearer product disclosures following the recent chocolate finance incident.
FinTech has seen users tap on reward programs in a way that proved unsustainable.
In response, the company changed its limited communication capabilities, resulting in a rapid increase in user frustration and withdrawal requests.
March 10th, Chocolate Finance Immediate pull-out function has been temporarily suspended We then suspended debit card spending, which was linked to investment value.
Instead, the withdrawal was processed within 3-10 business days.
It is reportedly We have processed more than $500 million withdrawals In a week.
These restrictions were stated in the Platform’s Terms of Use, but Tan pointed out that customers may not fully understand their meaning or the risks involved.
Despite the confusion, Tan, who is also a board member of the Singapore Financial Authority (MAS), said that regulatory protections will function as intended.
Customer assets are supported and held by authorized custodians – protected, with standard withdrawals being processed at market value within a few days.
Chocolate Finance operates under Singapore’s Capital Market Services Licensing System and covers digital advisors and portfolio managers.
Product features like immediate withdrawal do not require regulatory approval, but MAS requires appropriate risk management and transparent disclosure.
MAS is reviewing cases to evaluate how such platforms can better meet these requirements.
Tan also reminded retail investors to understand the products they invest in and seek professional advice when necessary.
