In an effort to prevent a recurrence of significant losses experienced in Web3 last year, the Monetary Authority of Singapore (MAS) has introduced new initiatives to safeguard the assets of customers in Singapore.
In a statement yesterday (3rd July), the MAS announced that Singapore licensed digital asset firms will have to not only segregate customer assets from their own, but also hold them in a trust before the end of the year.
Firms issued with a Digital Payments Token license will also have to conduct daily reconciliation of customer assets, keep proper books and records, provide clear disclosure to customers on the risks involved with their assets being held by a DPT provider, as well as maintain access and operational controls to customers’ DPTs in Singapore.
Under the new rules, the MAS will also restrict the cryptocurrency firms from facilitating lending or staking services for retail customers, “as these activities are generally not suitable for retail public.”
The MAS said that that these measures were introduced following an October 2022 public consultation on regulatory measures to enhance investor protection and market integrity in DPT services, shortly before the fall of centralized exchange FTX.
[Editor’s Note: This article does not represent financial advice. Please do your own research before investing.]
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