Singapore to require crypto firms to put user assets into trusts by year-end
MAS is also working to restrict crypto service providers from facilitating lending or staking for retail customers, but not for institutional ones. Singapore’s central bank is introducing new measures to improve investor protection and market integrity in the cryptocurrency industry. On July 3, the Monetary Authority of Singapore (MAS) announced new requirements for crypto service providers to hold customer assets into a statutory trust by year-end. “This will mitigate the risk of loss or misuse of customers’ assets, and facilitate the recovery of customers’ assets in the event of a DPT service provider’s insolvency,” the regulator said. The new custody measures follow a public consultation on regulatory measures to reduce risks to consumers from crypto trading which was launched in October 2022. According to the MAS, the consultation received “significant interest” from a wide range of respondents. In the official response to the public consultation, Singapore’s central bank noted t...