Singapore will require cryptocurrency exchanges to keep client assets safe before the end of the year, as part of efforts to ensure funds are protected after FTX's explosion in November.
Singapore Tells Cryptocurrency Platforms To Keep Customer Money Safe
The Monetary Authority of Singapore (MAS) said today that the city-state will also advance its proposal to ban lending and staking for individual investors.
MAS had initiated a consultation on these measures in October last year, just before the collapse of FTX.
Singapore's moves follow negotiations aimed at tightening its regulatory regime for digital assets. Meanwhile, other places, such as Hong Kong, are seeking greater participation in the industry from individuals and institutions.
“Given the extremely high risk and speculative nature of digital payment token trading, regulations alone cannot protect consumers from all losses,” MAS said in a statement.
It was also stated that consumers should continue to exercise maximum caution when trading.
Cryptocurrency exchanges operating in Singapore will need to comply with the new requirement and ensure that customer assets are adequately protected. This move is in line with Singapore's commitment to providing a safe and regulated environment for digital asset trading.
It is very important for individuals participating in the cryptocurrency market to be aware of regulatory developments and be vigilant when trading digital assets.
*Not investment advice.