Before the end of the year, bitcoin exchanges serving users from Singapore must transfer client digital assets to trusts for trust management. This follows from orders local regulator.
MAS made a similar recommendation to stakeholders in October 2022 ahead of the FTX collapse.
The Monetary Authority of Singapore will also require platforms to scale back lending and staking operations for retail investors. Institutional and accredited investors will retain access to these services.
“Regulations alone cannot protect consumers from all losses, given the extremely high risk and speculative nature of digital payment token trading,” the statement says.
The Central Bank urged investors to exercise “extreme caution” when making such transactions.
“MAS’s decision to refrain from accepting some proposals, such as requiring an independent custodian, shows that the regulator is listening to the views of industry representatives. It also takes into account practical considerations, such as the shortage of such industry participants, ” — stated TRM Labs Senior Policy Advisor Angela Ang.
Recall that in June, the Central Bank of Singapore considered aspects of tokenization and DeFi protocols.
Earlier, MAS Chairman Tharman Shanmugaratnam proposed equating the regulation of cryptocurrencies with Tradfi.
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Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!
Before the end of the year, bitcoin exchanges serving users from Singapore must transfer client digital assets to trusts for trust management. This follows from orders local regulator.
MAS made a similar recommendation to stakeholders in October 2022 ahead of the FTX collapse.
The Monetary Authority of Singapore will also require platforms to scale back lending and staking operations for retail investors. Institutional and accredited investors will retain access to these services.
“Regulations alone cannot protect consumers from all losses, given the extremely high risk and speculative nature of digital payment token trading,” the statement says.
The Central Bank urged investors to exercise “extreme caution” when making such transactions.
“MAS’s decision to refrain from accepting some proposals, such as requiring an independent custodian, shows that the regulator is listening to the views of industry representatives. It also takes into account practical considerations, such as the shortage of such industry participants, ” — stated TRM Labs Senior Policy Advisor Angela Ang.
Recall that in June, the Central Bank of Singapore considered aspects of tokenization and DeFi protocols.
Earlier, MAS Chairman Tharman Shanmugaratnam proposed equating the regulation of cryptocurrencies with Tradfi.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!