Two Asian cryptocurrency hubs, Singapore and Thailand, issued new directives on digital asset management in an announcement on July 3.
Aiming to better protect investors, the Monetary Authority of Singapore (MAS) has issued six new requirements for cryptocurrency companies.
MAS prohibits exchanges from providing lending or staking services to individual investors, except for licensed institutional investors. MAS also requires exchanges to separate user and corporate assets, and to hold user assets in a trust according to law.
MAS noted that segregation of user assets will minimize the risk of loss or misuse of assets, as well as facilitate quick recovery of customer assets in the event of service providers inability to pay.
In addition, MAS requires cryptocurrency exchanges to separate asset custody activities into a new business unit, to ensure this service operates independently and avoid possible related risks. go out.
Cryptocurrency service providers must ensure proper record keeping so that user assets can be reconciled on a daily basis. More importantly, exchanges must ensure access and operational control over customer assets remains within Singapore, while clearly disclosing risks on exchanges.
Legal exchanges in Singapore have until the end of the year to fully comply with the new rules.
MAS has also published a separate consultation paper on implementing further requirements for cryptocurrency businesses to curb unfair trading practices such as fraud and market manipulation.
MAS did not forget to remind users to be wary of the risks associated with cryptocurrencies, stating that although the new rules will “minimize” the risk of asset loss, in the event of bankruptcy, users Users will still face “significant delays” in recovering their assets.
“Regulations alone cannot protect consumers from all losses, given the risky and speculative nature of digital asset trading.” Therefore, investors should be "extremely cautious" when trading cryptocurrencies, and should not participate in unregistered (domestic and international) exchanges to avoid "losing money". ”.
New bans on some digital asset services in Thailand
The Thai Securities and Exchange Commission (SEC Thailand) has issued a number of new rules aimed at increasing transparency and minimizing risks in the digital assets sector, while also introducing bans on certain certain number of services.
The new measures are designed to enhance investor protection and ensure they are fully informed about the inherent risks associated with digital assets.
The Thai SEC requires digital asset service providers to issue clear warnings about the potential risks associated with cryptocurrency trading. It is prohibited to provide or support digital asset custody and lending services, except for certain exceptions as prescribed. At the same time, advertising and soliciting customers to participate in the above services is prohibited.
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