central bank of singapore It is going to introduce new measures to improve investor protection and market integrity in the industry. cryptocurrency
On July 3, the Monetary Authority of Singapore (MAS)announceNew requirements for crypto service providers to legally hold client assets in trusts by the end of the year
“This reduces the risk of loss or misuse of customer assets. and facilitate the recovery of customer assets in the event of a DPT provider [digital payment token] bankrupt”
The new regulation follows a public consultation on regulatory measures to reduce the risks to consumers from crypto trading.debutIn October 2022, according to MAS, the consultation was received. “Very much interest” from a wide range of respondents.
central bank of singaporespecifythat most of the respondents agreed that DPT provider User assets should be deposited in the same trust account as other users’ assets.
“however Some respondents disagreed, suggesting thatDPT provider Each client’s assets should be kept separate from other clients’ assets on a separate blockchain address.” This could help clients to be more transparent by allowing them to identify and verify their own holdings.
The MAS also requires crypto firms to conduct daily reconciliations of client assets and keep proper records. DPTSPs are also required to maintain access and control over client DPT operations in Singapore. and make sure the function is independent of other business units.
The regulator is also working on proposals to restrict crypto service providers from facilitating retail client lending or staking. However, for institutional and accredited investors, DPT providers may continue to facilitate such activities.
“MAS will monitor market developments and consumer perceptions of risk as these develop. and will take action to ensure that our measures remain balanced and appropriate.”
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