By the end of the year, bitcoin exchanges serving users in Singapore must transfer client digital assets to trusts under fiduciary management. This follows an order from the local regulator.
MAS has floated a similar recommendation for stakeholder consultation in October 2022 ahead of the FTX collapse.
The Monetary Authority of Singapore will also require platforms to wind down lending and staking operations for retail investors. Institutional and accredited investors will retain access to these services.
‘Regulations in themselves cannot protect consumers from all losses, given the exceptionally high risk and speculative nature of trading digital payment tokens,’ — the statement said.
The central bank urged investors to exercise ‘extreme caution’ when engaging in such activities.
‘MAS’s decision to refrain from adopting certain proposals such as a requirement for an independent custodian shows that the regulator is listening to industry voices. It also takes into account practical considerations like the scarcity of such participants,’— заявила Angela Ang, Senior Policy Advisor at TRM Labs.
Earlier in June, the Monetary Authority of Singapore considered aspects of tokenisation and DeFi protocols.
Earlier, MAS Chair Tharman Shanmugaratnam proposed to bring cryptocurrency regulation in line with TradFi.