By the end of 2023, all crypto trading platforms will have been required to comply.
This measure is to protect crypto assets in the case of calamities like the FTX collapse.
To safeguard investor funds, the Monetary Authority of Singapore (MAS) is considering mandating that crypto exchanges maintain a dedicated trust. On Monday, the Monetary Authority of Singapore (MAS) allegedly ordered cryptocurrency exchanges in the country to start holding customer funds in trust.
By the end of 2023, all crypto trading platforms will have been required to comply with the regulations and relocate their money. This measure is designed to protect crypto assets in the case of calamities like the FTX collapse.
Additionally, there is a movement afoot in Singapore to outlaw lending and staking programs for individual investors. The Monetary Authority of Singapore started pondering the matter in October of last year. And they came to the conclusion that further regulation of enterprises that deal with crypto assets was required.
Stringent Funds Management
The MAS has said that laws cannot always protect investors from losses. Especially when the market has a high-risk and speculative nature. Furthermore, it stressed the need for caution for traders. This shift comes at a time when several countries, including Hong Kong, are working to expand their global clout. Hong Kong is doing everything it can to attract crypto firms.
The financial authority has expressed confidence in the digital payment token (DPT) service providers, which is encouraging the safety of consumer funds. The new regulations would mandate that businesses maintain meticulous records and do daily checks on the settlement of their customers’ assets.
However, licensed cryptocurrency exchanges are obligated to ensure the segregation of duties between the custodial operation and the rest of the business.
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