Singapore Mandates Crypto Firms to Safeguard User Assets in Trusts

The Monetary Authority of Singapore (MAS) has announced new measures to enhance investor protection and market integrity in the cryptocurrency industry. By the end of the year, crypto service providers will be required to hold customer assets in a statutory trust to mitigate the risk of loss or misuse. The MAS also plans to restrict crypto firms from facilitating lending or staking for retail customers, while allowing such activities for institutional investors. The new regulations aim to address industry implosions and the crypto lending crisis that have affected firms in Singapore.