Today the Monetary Authority of Singapore (MAS) published a draft law requiring digital payment token providers to keep customer assets in a statutory trust. Digital payment tokens is the term using in Singapore for cryptocurrency and stablecoins. MAS asked for feedback within the month and wants to implement the law this year.
Simultaneously it aims to restrict the ability of service providers to enable crypto lending and staking for retail clients.
The collapse of several crypto firms, particularly FTX, has highlighted the degree to which crypto firms commingle their own assets with those of clients. Unfortunately, legislation won’t necessarily prevent it from happening but should make it harder and more likely a whistleblower will report them.
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