Singapore will require cryptocurrency exchanges to keep customer assets in a trust before the end of the year, part of efforts to ensure funds are safeguarded following the implosion of FTX in November.
The city-state will also push ahead with a proposal to ban lending and staking for retail investors, the Monetary Authority of Singapore said in a statement on Monday. MAS started a consultation on those measures in October last year, just before FTX unraveled.
Singapore’s moves comes after the consultation that sought to tighten its regulatory regime for digital assets. In the meantime, other places like Hong Kong are looking to attract more participation in the sector from individuals and institutions.
“Regulations alone cannot protect consumers from all losses, given the extremely high risk and speculative nature of digital payment token trading,” the MAS said in the statement, adding consumers must continue to exercise “utmost caution” when trading.
